US Mortgage Rates Drop Below 7% for First Time Since March

  • Thirty-year fixed rate slid 8 basis points to 6.94% last week
  • Gauge of applications for homebuying rose for a second week
Residential homes in Crockett, California.Photographer: David Paul Morris/Bloomberg
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US mortgage rates declined below 7% last week for the first time since March, spurring back-to-back increases in financing applications for home purchases.

The contract rate on a 30-year fixed mortgage decreased 8 basis points to 6.94% in the week ended June 14, according to Mortgage Bankers Association data released Wednesday. The five-year adjustable-rate mortgage slid 18 basis points to 6.27%, matching the lowest level since February.