Mortgage rates finally fall after 6-week climb

Mortgage rates finally broke a six-week streak of increases, but the decline will not provide much relief, as long-term rates dipped just below 7%.

Freddie Mac's latest Primary Mortgage Market Survey, released Thursday, showed that the average rate on the benchmark 30-year fixed mortgage dropped to 6.96%, down from last week's reading of 7.04%. The average rate on a 30-year loan was 6.69% a year ago.

"After crossing the 7%-mark last week, the 30-year fixed-rate mortgage saw its first decline in six weeks," said Sam Khater, Freddie Mac’s chief economist. "While affordability challenges remain, this is welcome news for potential homebuyers, as reflected in a corresponding uptick in purchase applications."

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The average rate on the 15-year fixed mortgage fell to 6.16% from 6.27% last week. One year ago, the rate on the 15-year fixed note averaged 5.96%.

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