Mortgage rates declined for the third straight week, according to Housing Predictor, falling to 4.87% for a 30-year fixed-rate loan.
This marks the lowest rate in months, as lenders cut rates again to lure potential homebuyers back into the market. Last week, the rate dipped just below the 5% mark, settling at an average of 4.95%.
The lower rates come at a particularly good time for housing market, as the warmer spring weather typically brings with it an increase in home sales.
“Interest rates for 30-year fixed mortgages were almost 0.2 percentage points below this year's high set just three weeks ago,” said Freddie Mac chief economist Frank Nothaft. “This means that homebuyers could now expect to pay $263 less per year on a $200,000 loan.”