The average long-term U.S. mortgage rate retreated for the ninth straight week to reach its lowest level since May.
According to mortgage buyer Freddie Mac, the average rate on a 30-year mortgage dipped to 6.61% from 6.67% last week. A year ago, the rate averaged 6.42%.
Borrowing costs on 15-year fixed-rate mortgages, popular with homeowners refinancing their home loans, also inched down this week, with the average rate falling to 5.93% from 5.95% last week. A year ago, it averaged 5.68%, Freddie Mac said.
Mortgage rates have been easing since late October, when the average rate on a 30-year home loan reached 7.79%, the highest level since late 2000.
Despite the recent decline, the average rate on a 30-year home loan remains sharply higher than just two years ago, when it was 3.11%. The large gap between rates now and then is contributing to the low inventory of homes for sale by discouraging homeowners who locked in rock-bottom rates two years ago from selling.
Some housing economists are forecasting that home sales will increase next year, on the assumption that mortgage rates ease further.
