Mortgage rates ease to 7.32% as housing market remains stalled

The average rate for a 30-year fixed mortgage dropped to 7.32% this week, marking the first decline since late August, according to Freddie Mac. The rate fell from 7.40% the previous week, though it remains significantly higher than the 6.19% average recorded one year ago.

Borrowing costs for 15-year fixed-rate mortgages also eased, slipping to 6.68% from 6.71% last week. These rates have been climbing since late February, driven by inflation and bond market volatility following the U.S. War with Iran, which pushed oil prices and Treasury yields higher.

The 10-year Treasury yield, which lenders use to price home loans, has recently eased after hitting its highest level since 2002. It stood at 5% on Thursday, well above its pre-war level of 3.97%. Fannie Mae projects the 30-year mortgage rate will average 7.4% in the final quarter of this year.

Read the full story at ClickOnDetroit | WDIV Local 4.