According to the Mortgage Daily News, the average rate on the 30-year fixed rate mortgage has fallen to 5.99%. That’s the lowest they’ve been since a dip last September.
The rate started this week at 6.21% and fell sharply Wednesday after Federal Reserve Chairman Jerome Powell said inflation “has eased somewhat but remains elevated,” which was a shift from previous language. That sent bond yields lower, and mortgage rates loosely follow the yield on the 10-year Treasury.
This drop may be a light at the end of the tunnel for many Americans looking to buy a mid-priced home. The historic drop in interest rates may also mean that homeowners who have mortgages from 2019 and older could potentially realize significant interest savings by refinancing.