US Mortgage Rates Fall for Sixth Consecutive Week, Reaching Lowest Level Since August

According to Yahoo News, mortgage rates in the US have fallen for the sixth straight week, reaching their lowest level since August. The average rate for a 30-year fixed loan dropped to 7.03%, down from 7.22% the previous week, according to Freddie Mac. This decline in mortgage rates has provided some relief to homebuyers who have been grappling with the highest borrowing costs in years. However, the housing market remains challenging, with a limited supply of homes for sale contributing to rising prices and further squeezing affordability. Initially, when rates began to fall, applications for purchase loans rebounded, but this improvement in demand has waned in recent weeks, said Sam Khater, Freddie Mac's chief economist. He added that although the lower rates are a welcome relief, they will need to drop further to consistently reinvigorate demand. Indications suggest that the Federal Reserve may pause its rate-hiking campaign during its upcoming meeting, as job openings in October fell to their lowest level since early 2021, according to a Labor Department survey. The government's monthly employment report, a crucial data point for the central bank, is due to be released on Friday. Jiayi Xu, a Realtor.com economist, predicts that a sustained improvement in inflation will bring the mortgage rate down to 6.5% by the end of 2024.