Average 30-year mortgage rate falls to 7.18% this week

The average 30-year fixed mortgage rate in the U.S. dropped to 7.18% this week, down from 7.24% last week, according to Freddie Mac, as reported by Sentinel and Lowell Sun.

This marks the third consecutive week of falling mortgage rates, providing some relief to prospective homebuyers facing elevated home prices and borrowing costs.

Rates on 15-year fixed mortgages, often used for refinancing, also decreased slightly to 6.57% from 6.60% last week.

Mortgage rates have generally been influenced by inflation, Federal Reserve policies, and bond market trends, particularly the 10-year Treasury yield, which has been easing recently after reaching its highest levels since 2002.

Despite the recent decline, rates remain above levels seen before the U.S. war with Iran began in late February, which had initially pushed rates higher due to increased oil prices and inflation.

Elevated mortgage rates have contributed to stalled U.S. home sales this year by increasing monthly costs and limiting purchasing power for buyers.