Freddie Mac data shows average 30-year fixed mortgage rates fell one basis point week-over-week amid cooling purchase applications.
Average 30-year fixed mortgage rates declined to 6.36% for the week ending May 14, down from 6.37% the prior week. The slight decrease comes as purchase demand softens, reflecting higher borrowing costs and affordability pressures in the housing market.
Last year at this time, rates stood at 6.81%, indicating a modest year-over-year decline. The current rate remains elevated compared to pre-2022 levels but has stabilized below recent peaks near 8% seen in late 2023.
No immediate market reaction was reported, though lower rates may provide limited relief for prospective homebuyers facing persistent inventory shortages and high prices.