Interest rates on a 30-year mortgage fell by five basis points to 6.76% from 6.81%, according to a weekly survey conducted by Freddie Mac. It was the second consecutive week that interest rates declined after a sudden 0.21% spike a month ago.
“In recent weeks, rates for the 30-year fixed-rate mortgage have fallen even lower than the first quarter average of 6.83%,” said Sam Khater, Freddie Mac’s chief economist.
The 15-year rate also declined to 5.92% down from 5.94%. Both the 30-year and 15-year rates were lower than a year ago when those rates were 7.22% and 6.47% respectively.
But the sudden jump in rates in mid-April has had a chilling effect on mortgage applications. Over the previous two weeks, mortgage applications declined by 12.7% and 4.2%, according to the Mortgage Bankers Association.
