30-year mortgage rate falls to 7.24%, a second weekly drop

The average 30-year fixed mortgage rate fell to 7.24% this week from 7.32%, its second straight weekly decline and its lowest level this month, Freddie Mac said Thursday. The average 15-year fixed rate eased to 6.60% from 6.68%. A year ago, the two rates averaged 6.17% and 5.41%. Freddie Mac chief economist Sam Khater said the decline modestly boosted purchasing power for prospective buyers. Freddie Mac's weekly survey covers conventional, conforming home purchase loans for borrowers who put 20% down and have excellent credit.

Why it matters: Rates remain more than a percentage point above year-ago levels, which raises monthly payments for new buyers. Freddie Mac's survey reflects well-qualified borrowers, so many people will be quoted higher rates.