Mortgage rates fall for fourth consecutive week, lowest level in over a year
Mortgage rates fell for the fourth consecutive week, mortgage buyer Freddie Mac said Thursday.
Freddie Mac's latest Primary Mortgage Market Survey, released Thursday, showed the average rate on the benchmark 30-year fixed mortgage decreased to 6.17% from last week's reading of 6.19%.
The average rate on a 30-year loan was 6.72% a year ago.
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"The last few months have brought lower rates and homebuyers are increasingly entering the market," said Sam Khater, Freddie Mac’s chief economist.
The average rate on the 15-year fixed mortgage fell to 5.41% from last week's reading of 5.44%.
One year ago, the rate on the 15-year fixed note averaged 5.99%.
The declines come a day after the Federal Reserve announced its second interest rate cut of the year. Fed policymakers voted to lower the benchmark federal funds rate by 25 basis points to a new range of 3.75% to 4%. The move follows a rate cut of that size in September, which was the first reduction this year.
Fed Chairman Jerome Powell said Wednesday it remains unclear whether the ongoing government shutdown and the resulting lack of key economic data will affect the central bank’s December meeting.
With key indicators still missing due to the shutdown, Powell said the Fed will proceed carefully until it has a clearer view of the economy.
"If you’re driving in the fog, you slow down," he said at the conclusion of the two-day Federal Open Market Committee (FOMC) meeting. The FOMC's next policy meeting is scheduled for Dec. 9–10.
The benchmark U.S. 10-year Treasury note yield on Wednesday notched its biggest daily rise since June 6. It was up about 2.3 basis points at 4.095% on Thursday. Mortgage rates closely track the 10-year Treasury yield.
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"Mortgage rates have fallen 87 basis points from their mid-January peak, offering meaningful relief for sidelined buyers and homeowners considering refinancing," said Hannah Jones, Realtor.com's senior economic research analyst. "While the housing market remains challenging for many households, stable home prices, growing inventory, and a slower market pace may open the door for buyers looking to make a move before the year’s end."
The recent decline in mortgage rates has not done much to stimulate the housing market, against the backdrop of a softening labor market, growing economic uncertainty and still-rising house prices. Lower mortgage rates have, however, boosted refinancing of existing home loans.
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FOX Business' Amanda Macias and Reuters contributed to this report.
