Mortgage Rates Fall For Second Straight Week In Response to Positive Economic Data

BY Benzinga | AGENCY | 06/14/24 04:31 PM EDT

Mortgage rates dropped for a second consecutive week as inflation continued to ease.

The average 30-year fixed-rate mortgage was 6.95% for the week ending June 13, according to Freddie Mac‘s (OTC:FMCC) latest Primary Mortgage Market Survey, Fox Business reported.

That is down from an average of 6.99% during the prior week, but up from 6.69% a year ago.

For a 15-year mortgage, the average rate fell to 6.17% for the past week from 6.29% for the previous week, but modestly from an average rate of 6.10% registered a year earlier.

See Also: Will Mortgage Rates Pop Again? Homebuyers Combat An Affordability Crises

The lower rates came after a positive inflation report that showed a slight easing in consumer prices. On an annual basis, prices rose 3.3% in May, down from a 3.4% rise in April. On a monthly basis, prices remained unchanged after rising 0.3% the prior month, according to Fox Business.

Inflation continues to moderate towards the 2% target level set by the Federal Reserve, but the central bank still intends to keep interest rates elevated until it is more confident that inflation will keep falling.

On Wednesday, it announced it would maintain the federal funds rate range at 5.25% to 5.5%, where rates have held steady since last July. 

“Mortgage rates continued to fall back this week as incoming data suggests the economy is cooling to a more sustainable level of growth,” Freddie Mac’s Chief Economist Sam Khater told Fox Business.

“Top-line inflation numbers were flat but shelter inflation, which measures rent and homeownership costs, increased showing that housing affordability continues to be an ongoing impediment for buyers on the house hunt.”

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