US long‑term mortgage rates fall to 6.18% this week
Freddie Mac reported that the average 30‑year mortgage rate dropped to 6.18% on Wednesday, down from 6.21% the week before. Year‑over‑year the monthly average had been 6.85%. Fifteen‑year fixed‑rate mortgages increased to 5.50% from 5.47%.
Mortgage rates tend to track the 10‑year Treasury yield, which stood at 4.15% midday Wednesday, slightly above last week’s 4.12%. Since Oct. 30, the 30‑year rate has hovered near 6.17%, marking its lowest level in more than a year.
Fed rate cuts began in September and extended into the month, signaling expectations of lower inflation or slower growth. Lower short‑term rates can encourage bond buying that may reduce long‑term yields, though the translation to mortgage rates is inconsistent.
Homebuyers with the ability to pay cash or lock in current rates are in a better position than a year ago, while housing listings have risen and sellers are trimming prices to expedite sales. First‑time buyers continue to face affordability challenges, with economic uncertainty keeping many off the market.
Sales of previously occupied homes rose in November versus the prior month, but growth slowed relative to a year earlier—its first decline since May. Home sales through the first 11 months fell 0.5% year‑over‑year.