The average rate for a 30-year mortgage in the U.S. is down to 6.15%, according to Freddie Mac. That's the lowest since the week of Sept. 15, 2022. However, the rate is still 2.59% higher than a year ago.
Higher interest rates can add hundreds, if not, thousands of dollars to monthly payments.
Experts say the higher interest rates are a factor in sliding home sales.
According to the National Association of Realtors, pending home sales were down for the sixth month in a row in November.
"Pending home sales recorded the second-lowest monthly reading in 20 years as interest rates, which climbed at one of the fastest paces on record this year, drastically cut into the number of contract signings to buy a home," said NAR Chief Economist Lawrence Yun. "Falling home sales and construction have hurt broader economic activity."
People who can afford to pay off their homes in 15 years can get better rates. The average rate for a 15-year mortgage is 5.28%, according to Freddie Mac. While that's the lowest it's been since Sept. 2022, it's also 2.49% higher than a year ago.