The average rate on a 30-year mortgage in the United States has decreased for the third consecutive week, signaling a positive trend for prospective homebuyers. This movement comes at a critical time as the housing market enters its traditionally busy season, which spans the spring and summer months.

According to the latest report from mortgage giant Freddie Mac, the current average rate now stands at 6.62%, a slight decline from the previous week's rate of 6.64%. To provide some context, this time last year, the average rate was considerably higher at 6.88%. This reduction in rates not only reflects a shift in market dynamics but also enhances the purchasing power of potential buyers, making homeownership more accessible.

Throughout the past several months, the average mortgage rate has generally moved lower, particularly after peaking at just over 7% in mid-January. Such declines in mortgage rates can significantly impact the housing market by encouraging more individuals to enter the market, especially first-time homebuyers who may have been previously deterred by higher borrowing costs.

In contrast to the trends seen with 30-year fixed-rate mortgages, the average rate for 15-year fixed-rate mortgages, which are typically preferred by homeowners looking to refinance, remained unchanged from last week at 5.82%. However, it's worth noting that this figure represents a decrease from the 6.16% average observed a year ago, allowing homeowners the opportunity to refinance at more favorable terms.

The fluctuation in mortgage rates is influenced by several interconnected factors. Global demand for U.S. Treasury securities, for instance, plays a crucial role in shaping interest rates. When investors show heightened interest in U.S. Treasurys, it typically leads to lower rates on mortgages. Additionally, the Federal Reserve's decisions regarding interest rates have a direct impact on borrowing costs. Recently, the Fed has been closely monitoring economic indicators, which leads to speculation and expectations that also influence bond market behavior and consequently mortgage rates.