Good news on the home-buying front: after months of mortgage rates trending upward, fueled by rising inflation and the US Federal Reserve’s hiking base rates to combat that inflation, signs have begun to emerge that the average home lending rate in the United States has begun to decline instead. Let’s take a closer look at just what’s at play in the world of mortgage rates and what they might have in store for us going forward deeper into 2023.

Bucking the Trend

The news broke on April 13th when it was revealed by Freddie Mac that average mortgage rates had declined for the fifth straight week in a row, dropping from 6.28 percent to 6.27 percent. This single hundredth of a percentage point might not feel like much of a difference, but this is where perspective is important: the previous week, rates came down from 6.32 percent. It’s even more significant when you look back at the last high before this downward trend began; on March 9th, Freddie Mac found average lending costs were at 6.73 percent, clearly showcasing just how much more affordable home loans have become over those five weeks.

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