
Talk of the Town: Mitchell Barocio and Joe Woolwine
By Marcus Chen
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By MATT OTT, AP Business Writer WASHINGTON (AP) — The average long-term U.S. mortgage rate declined for the second straight week, falling to its lowest level in more than a month. The benchmark 30-year fixed-rate mortgage fell to 7.24% from 7.32% last week, mortgage buyer Freddie Mac said Thursday. One year ago, the average rate was 6.17%. Borrowing costs on 15-year fixed-rate mortgages, often sought by borrowers refinancing a home loan, also fell this week. That average rate dipped to 6.60% from 6.68% last week. A year ago, it was at 5.41%. Lower mortgage rates relieve some of the pressure on prospective homebuyers facing higher borrowing costs on home loans. Rates on home loans are influenced by inflation, Federal Reserve policy and bond-market investors’ expectations for the economy, among other factors. They generally follow the trajectory of the 10-year Treasury yield, which lenders use as a guide to pricing home loans. Mortgage rates had been climbing since late February, when