US mortgage rates drop sharply to lowest level in a year

Mortgage rates in the United States have fallen to their lowest level in more than a year – a balm for prospective homebuyers and sellers in a challenging real estate market.

The average rate on 30-year mortgages, the most popular home loan in the United States, dropped to 6.47 per cent last week, Freddie Mac reported. That rate has been steadily easing since April, when it rose above 7 per cent. It comes as a relief for not only buyers, but also potential sellers, who have felt locked into lower rates on their existing loans and have kept their houses off the market.