LOS ANGELES (AP) — Home loan financing costs eased again this week, as the average long-term U.S. mortgage rate slid to its lowest level in four months.
The average rate on a 30-year mortgage dropped to 7.03% from 7.22% last week, mortgage buyer Freddie Mac said Thursday. A year ago, the rate averaged 6.33%.
The last time the average rate was lower was in early August, when it was at 6.96%.
Borrowing costs on 15-year fixed-rate mortgages, popular with homeowners refinancing their home loan, also declined this week, with the average rate falling to 6.29% from 6.56% last week. A year ago, it averaged 5.67%, Freddie Mac said.
This is the sixth straight weekly drop for rates, echoing a recent pullback in the 10-year Treasury yield, which lenders use as a guide to pricing loans. The yield, which in mid October surged to its highest level since 2007, has been falling on hopes that the Federal Reserve may finally be done raising interest rates in its bid…