Mortgage rates fall to lowest level

Mortgage rates fall to lowest level in over a month as Iran deal framework takes shape

Mortgage rates fell this week to the lowest level in more than a month, mortgage buyer Freddie Mac said Thursday.


Freddie Mac's latest Primary Mortgage Market Survey, released Thursday, showed the average rate on the benchmark 30-year fixed mortgage declined to 6.47% from last week's reading of 6.52%.

The average rate on a 30-year loan was 6.81% a year ago.

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A couple tours a home.
The average rate on the benchmark 30-year fixed mortgage fell to 6.47%. (Daniel Acker/Bloomberg via Getty Images)

"Incoming data continues to reflect a resilient consumer, with retail sales improving and pending home sales strengthening, suggesting purchase demand is continuing to modestly improve," said Sam Khater, Freddie Mac's chief economist.

The average rate on a 15-year fixed mortgage fell to 5.81% from last week's reading of 5.84%.

Rates have been elevated of late as concerns over the Iran war weighed on markets. On June 17, President Donald Trump signed a memorandum of understanding while attending meetings in France, while Iran signed remotely. The temporary framework calls for an immediate cessation of hostilities, the reopening of the Strait of Hormuz, limits on Iran's enriched uranium stockpile and a 60-day window to negotiate a permanent agreement addressing Tehran's nuclear program.

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The deal also includes provisions to ease economic pressure on Iran, including access to some frozen assets and the lifting of certain restrictions, while drawing criticism from some conservatives who argue the agreement offers too many concessions without requiring Iran to immediately dismantle its nuclear infrastructure.

"The previous weeks have been filled with constant back-and-forths, showing progress toward a resolution, only to be followed by heightened military action," said Realtor.com senior economist