U.S. home loan rates drop to 6.23%, halting three-week growth
Federal Reserve actions have influenced recent trends in U.S. mortgage rates. The central bank reduced its key interest rate in September and again last month amid signs of a slowing labor market.
This week, Freddie Mac reported the average rate for a 30-year fixed mortgage declined to 6.23% from 6.26% the prior week. The 15-year rate also edged down to 5.51%, compared to 5.54% last week.
Four weeks earlier, the 30-year rate reached 6.17%, its lowest point in over a year. Compared to the same period last year, both rates remain lower than the 6.81% and 6.10% levels recorded then.
Lower borrowing costs contributed to a fourth consecutive monthly increase in existing home sales during October. However, tight affordability and economic uncertainty have kept annual sales near 4 million units since 2023, below the historical average of 5.2 million.
Economists project the 30-year mortgage rate could settle around 6% in the coming year despite potential additional Fed rate reductions.