While the average long-term U.S. mortgage rate inched down for the second consecutive week – reaching its lowest level in four weeks – rates have remained at roughly 5% or higher during the past year. This stretch of rates consistently above 5% hasn’t happened since 2010. In the week-ending May 11, the benchmark 30-year mortgage interest rate averaged 6.35%, based on applications submitted to Freddie Mac from lenders across the country. That rate was down from 6.39% the previous week and well below the two-decade high of 7.08% recorded in fall 2022. Still, the average long-term U.S. mortgage rate remains above the year-earlier rate of 5.3% and well above the historic low of 2.65% from early January 2021. For perspective, during the five years leading up to the pandemic (2015-2019), the 30-year fixed-rate mortgage interest rate ranged from 3.41% to 4.94%, averaging 3.99%. However, if you think mortgage interest rates are high now, refer to rates during the 1980s, which ranged from 9.03% to 18.63%. As inflation continues to moderate, mortgage rates are expected to continue to trend down.
