Mortgage rates drop to 6.27%: Freddie Mac

Mortgage Rates fell for the second straight week, mortgage buyer Freddie Mac said Thursday.

Freddie Mac’s latest survey of the primary mortgage market, released Thursday, showed the benchmark’s average rate. Fixed mortgage over 30 years decreased to 6.27% from last week’s reading of 6.3%.

The average rate for a 30-year loan was 6.44% a year ago.

“Importantly, homeowners have noticed these consistently lower rates, leading to an uptick in refinancing activity,” said Sam Khater, Freddie Mac’s chief economist. “Combined with rising housing inventory and slower house price growth, these rates also create a more favorable environment for those looking to purchase a home.”

NEARLY 1 IN 5 AMERICAN HOMES REDUCING PRICES AS BUYERS TAKE THE FOREFRONT IN AN EVOLVING MARKET

TREASURY BESSENT SAYS FIXING THE HOUSING AFFORDABILITY CRISIS WILL BE ONE OF HIS “BIG PROJECTS” THIS FALL

The average rate for a 15-year fixed-rate mortgage fell to 5.52% from 5.53% last week.

A year ago, the 15-year fixed note rate averaged 5.63%.

Concerns about the job market and uncertainty surrounding the ongoing federal government shutdown continue to weigh on potential home buyers, according to Realtor.com senior economist Jiayi Xu.

TREASURY BESSENT SAYS FIXING THE HOUSING AFFORDABILITY CRISIS WILL BE ONE OF HIS “BIG PROJECTS” THIS FALL

“Nationwide, purchasing power has declined sharply as house prices and mortgage rates continue to outpace income growth,” Xu said. “As a result, substantial wage gains and improved financial stability will be key to boosting buying sentiment.

“However, broader uncertainty related to the current government shutdown could further weigh on confidence, particularly in markets with a higher share of federal workers and contractors, who face financial strain and concerns about possible layoffs,” she added.

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Although falling mortgage rates have lured homebuyers into the market, many are still hesitant due to economic uncertainty and the affordability crisis gripping the United States.