After five consecutive weeks of increases, U.S. mortgage rates decrease

CAPE GIRARDEAU, Mo. (KBSI) – After five consecutive weeks of increases, the average U.S. mortgage 30-year rate decreased this week to 6.6 percent from 6.73 percent.

The average rate one year ago was 4.16 percent.

Local realtor Lori Fowler says while the lower rate offers some cautious optimism, the current banking crisis has created a greater concern to the banking industry as a whole. However, Fowler does not see it affecting local or community banks.

“There has been a little bit of concern in the market because of the announcement of the bank failure and that, in turn, is a little bit of a chain reaction where there is concern about the banking system as a whole. It is not a problem with community or local banks … it is isolated.  It has paused a little bit of a blip in interest rates. They have gone down from over 7 percent to down into the 6’s,” she said.

Fowler says a lender reached out Friday morning with a 6-and-a-quarter rate on a 30-year fixed mortgage.

While that is being viewed as temporary, those in the middle stage of homebuying should benefit by the rate slide. If you are looking to lock in a longer fixed rate, be prepared to pay a higher rate.