Purchase rates for 30-year fixed mortgages fell below refinance rates by 9 basis points, marking a shift in lending trends.
The average 30-year fixed-rate mortgage for home purchases declined 13 basis points to 6.17%, undercutting the 30-year refinance rate by 9 basis points. The move follows a broader easing in long-term borrowing costs, with 15-year fixed purchase rates also slipping 5 basis points to 5.75%.
Refinance rates remained elevated, with the 30-year fixed refi rate holding at 6.26%. The spread between purchase and refi rates has widened in recent weeks, reversing a trend where refinance rates typically tracked below purchase rates. Adjustable-rate mortgages saw sharper declines, with the 5/1 ARM purchase rate falling 22 basis points to 6.09%.
National averages for VA loans also reflected the downward trend, with 30-year VA purchase rates at 5.69% and refi rates at 5.61%. The data underscores a divergence in lending conditions for new buyers versus existing homeowners.