Mortgage Rates Fall to 6.69%. Here's How Much Your Payments Will Be at This Rate.

The average rate on a 30-year fixed-term mortgage loan---the most common type of mortgage in the United States---slipped further, dropping to the lowest level in a month.

The average contract rate for the 30-year mortgage loan dropped to 6.69% in the week ending Dec. 5. That marks a 0.12% decrease from last week's rate of 6.81%. It also represents a decline of 0.34% from the rate recorded in the same period last year.

It is currently the lowest mortgage rate in over a month and represents the second consecutive week of declines, according to data from Freddie Mac's Primary Mortgage Market Survey.

The contract rate for the 15-year mortgage loan also dropped by 0.14% to 5.96%. It is important to note that, unlike the 30-year loan, the rate for the 15-year term increased the previous week.

"Despite just a modest drop in rates, consumers clearly have responded as purchase demand has noticeably improved. The responsiveness of prospective homebuyers to even small changes in rates illustrates that affordability headwinds persist," Sam Khater, Freddie Mac's chief economist, said in a statement.

How Much Will Monthly Mortgage Payments Be at a Rate of 6.69%?

Our sample computations will use a median home price of $434,720, which is the median sale price as of October, per the real estate website Redfin. We are also assuming that an individual is purchasing a house at the current mortgage rate of 6.69% for the 30-year loan.

At 20% Down Payment

A 20% down payment for a median-priced home is around $86,944. The monthly mortgage payments would then total to $2,241. On average, buyers who close their deals this week will be able to save $28 more than those who closed last week when the contract rate was 6.81%.

At 3.5% Down Payment

A buyer purchasing a home at a 3.5% down payment would pay about $15,215 for a median-priced home of $434,720. This would then equate to monthly mortgage payments of $2,704 for an individual with a mortgage rate of 6.69%.

In comparison, buyers who purchase close a deal this week will be able to save $33 more than those who close at last week's rate.