Skip to Content Facebook Feature Image

Average rate on a 30-year mortgage falls to 6.73%, lowest level since early February

News

Average rate on a 30-year mortgage falls to 6.73%, lowest level since early February
News

News

Average rate on a 30-year mortgage falls to 6.73%, lowest level since early February

2024-08-02 01:06 Last Updated At:01:10

LOS ANGELES (AP) — The average rate on a 30-year mortgage fell this week to its lowest level since early February, easing borrowing costs for prospective homebuyers facing record-high home prices.

The rate fell to 6.73% from 6.78% last week, mortgage buyer Freddie Mac said Thursday. A year ago, the rate averaged 6.9%.

Borrowing costs on 15-year fixed-rate mortgages, popular with homeowners refinancing their home loans, also fell this week, pulling the average rate down to 5.99% from 6.07% last week. A year ago, it averaged 6.25%, Freddie Mac said.

After jumping to a 23-year high of 7.79% in October, the average rate on a 30-year mortgage has mostly hovered around 7% this year — more than double what it was just three years ago.

The elevated mortgage rates, which can add hundreds of dollars a month in costs for borrowers, have discouraged home shoppers, extending the nation’s housing slump into its third year. Sales of previously occupied U.S. homes fell in June for the fourth month in a row. And sales of new single-family homes fell last month to the slowest annual pace since November.

Still, the average rate on a 30-year mortgage hasn’t gone above 7% since late May, reflecting recent signs of cooling inflation, which have raised expectations that the Federal Reserve will cut its benchmark rate in September.

Mortgage rates are influenced by several factors, including how the bond market reacts to the central bank’s interest rate policy decisions. That can move the trajectory of the 10-year Treasury yield, which lenders use as a guide to pricing home loans.

Hopes of a Fed rate cut this fall amid signs the economy's growth is slowing have helped lower the yield on the 10-year Treasury note in recent weeks. The yield, which topped 4.7% in late April, was at 3.98% in midday trading in the bond market — the lowest it's been since February.

If bond yields continue to decline in anticipation of the Fed lowering rates this fall, that could lead mortgage rates to ease further.

“Expectations of a Fed rate cut coupled with signs of cooling inflation bode well for the market, but apprehension in consumer confidence may prevent an immediate uptick as affordability challenges remain top of mind,” said Sam Khater, Freddie Mac’s chief economist. “Despite this, a recent moderation in home price growth and increases in housing inventory are a welcoming sign for potential homebuyers.”

Even so, most economists expect the average rate on a 30-year home loan to remain above 6% this year. That may not be enough of a decline to entice home shoppers who have been holding out for mortgage rates to come down, nor persuade homeowners who locked in rock-bottom rates three years ago that it’s a good time to sell.

Consider, some 86% of all outstanding home mortgages have an interest rate below 6%, and more than three quarters have a rate 5% or lower, according to Realtor.com.

“While the potential rate cut in September will be a good start to bring the rate down, subsequent drops in mortgage rates may not be as significant as many anticipated because the market is already pricing in rate cuts and such expectation is reflected by recent rate drops,” said Jiayi Xu, an economist at Realtor.com.

FILE - A for sale sign stands outside a single-family home June 27, 2024, in Englewood, Colo. On Thursday, Aug. 1, 2024, Freddie Mac reports on this week's average U.S. mortgage rates. (AP Photo/David Zalubowski, File)

FILE - A for sale sign stands outside a single-family home June 27, 2024, in Englewood, Colo. On Thursday, Aug. 1, 2024, Freddie Mac reports on this week's average U.S. mortgage rates. (AP Photo/David Zalubowski, File)

ATLANTA (AP) — Will Howard transferred to Ohio State to win a national championship, and he reached that goal by playing the best football of his career throughout the Buckeyes' four games in the College Football Playoff.

He was never better than in the first half and at the end of Ohio State's 34-23 victory over Notre Dame on Monday night.

Howard connected on his first 13 passes to set the record for consecutive completions in a CFP title game. And on third-and-11 after the Fighting Irish had pulled within eight points, he lofted a pass to Jeremiah Smith for a 56-yard gain that all but sealed the win.

“I give this guy a lot of credit right here,” Buckeyes coach Ryan Day said with Howard sitting to his left. “I think he ran the ball 16 times, and we knew it was going to be that way. It was the last game of the season, and we were going to (use all) our bullets. He really put the team on his back.”

Howard arrived in Atlanta with a hot hand, and the Irish did nothing to cool him off early. He spread the ball among six receivers, often throwing short and letting them pick up yards after the catch.

He tied the mark for consecutive completions late in the second quarter when he hit Carnell Tate for 20 yards on third-and-7, then broke it with a 15-yard pass to Smith two plays later.

The streak ended when Notre Dame safety Xavier Watts broke up a pass intended for TreVeyon Henderson near the goal line.

“Coming into the season, one thing Coach Day emphasized was taking completions,” Howard said. “Maybe I had to check it down or it wasn't perfectly drawn up. You just want to keep the ball moving and stay on schedule."

Alabama’s Mac Jones set the previous record with 12 completions in a row against Ohio State in the 2021 title game.

Howard finished 17 of 21 for 231 yards and was selected offensive MVP of the game. He threw touchdown passes of 8 yards to Smith and 6 yards to Quinshon Judkins in the first half.

Over his four playoff games, Howard completed 75.2% of his throws (82 of 109) for 1,150 yards and eight touchdowns with two interceptions

“It can be a lot,” Howard said. “The lights are bright. It's a spectacle. The TV timeouts are long; everything's a show a little bit. You have to block that out and eliminate all the distractions. It's about whoever has the poise in the noise and overcomes adversity.”

Howard's passing against the Irish overshadowed the tough running he did when it was called for. He picked up first downs on five of his first six designed runs or scrambles, and late in the game his 8-yard burst gave the Buckeyes a big first down. He had a career-high 16 carries for a season-best 57 yards.

“It may not always be pretty and sometimes you have to pick it up with your legs,” he said.

Howard played his first four years at Kansas State, where he battled injuries and lost a quarterback competition in 2022 before an injury to the starter put him in position to lead the Wildcats to a Big 12 championship. He was second-team All-Big 12 in 2023, and Day saw enough in Howard to sign him out of the transfer portal.

The opportunity to play with some of the most talented offensive players in the country made Howard better and positioned him to potentially be a middle- or late-round pick in the NFL draft.

“I saw something in him, a football IQ intelligence,” Day said. “I saw him play on film at Kansas State and win championships and win big games and being able to make an impact with his feet but also throw with accuracy, and those are hard things to find.”

Howard said going to Ohio State was the best decision of his life.

“It's crazy to look back at all that's happened during my career — going from playing as a freshman at Kansas State and not really knowing what I'm doing and going into my junior year, not thinking I'd be playing and then winning a Big 12 championship. I'm just so unbelievably thankful that I got a chance to be a Buckeye, even if it was just one year.”

Get poll alerts and updates on the AP Top 25 throughout the season. Sign up here. AP college football: https://apnews.com/hub/ap-top-25-college-football-poll and https://apnews.com/hub/college-football

Ohio State quarterback Will Howard passes against Notre Dame during second half of the College Football Playoff national championship game Monday, Jan. 20, 2025, in Atlanta. (AP Photo/Butch Dill)

Ohio State quarterback Will Howard passes against Notre Dame during second half of the College Football Playoff national championship game Monday, Jan. 20, 2025, in Atlanta. (AP Photo/Butch Dill)

Ohio State quarterback Will Howard celebrates after a touchdown by running back Quinshon Judkins during second half of the College Football Playoff national championship game against Notre Dame Monday, Jan. 20, 2025, in Atlanta. (AP Photo/Jacob Kupferman)

Ohio State quarterback Will Howard celebrates after a touchdown by running back Quinshon Judkins during second half of the College Football Playoff national championship game against Notre Dame Monday, Jan. 20, 2025, in Atlanta. (AP Photo/Jacob Kupferman)

Ohio State quarterback Will Howard celebrates after a touchdown by running back Quinshon Judkins during second half of the College Football Playoff national championship game against Notre Dame Monday, Jan. 20, 2025, in Atlanta. (AP Photo/Jacob Kupferman)

Ohio State quarterback Will Howard celebrates after a touchdown by running back Quinshon Judkins during second half of the College Football Playoff national championship game against Notre Dame Monday, Jan. 20, 2025, in Atlanta. (AP Photo/Jacob Kupferman)

Ohio State quarterback Will Howard passes against Notre Dame during first half of the College Football Playoff national championship game Monday, Jan. 20, 2025, in Atlanta. (AP Photo/Jacob Kupferman)

Ohio State quarterback Will Howard passes against Notre Dame during first half of the College Football Playoff national championship game Monday, Jan. 20, 2025, in Atlanta. (AP Photo/Jacob Kupferman)

Ohio State quarterback Will Howard passes against Notre Dame during first half of the College Football Playoff national championship game Monday, Jan. 20, 2025, in Atlanta. (AP Photo/Jacob Kupferman)

Ohio State quarterback Will Howard passes against Notre Dame during first half of the College Football Playoff national championship game Monday, Jan. 20, 2025, in Atlanta. (AP Photo/Jacob Kupferman)

Recommended Articles
Hot · Posts