U.S. 30-year mortgage rates fall to year low as buyers await Fed rate cut

Freddie Mac said in a statement Thursday that the average rate for a 30-year fixed-rate mortgage was 6.46%, down from 6.49% last week. Borrowing costs have fallen sharply after breaking 7% earlier this year, which has boosted homebuyers' purchasing power and prompted some potential buyers to give up the sidelines. The National Association of Realtors (NAR) reported Thursday that U.S. existing home sales rose for the first time in five months in July. Although existing home sales rose 1.3% month-on-month in July, it was still the slowest July growth rate since 2010, indicating that high housing prices and a shortage of affordable housing still deter many Americans. Buyers and sellers may also wait until financing costs fall further before making a decision. "The sharp drop in interest rates earlier this month, currently hovering just below 6.5%, is not enough to motivate potential homebuyers, and we expect that interest rates may need to fall another percentage point to drive buyer demand," said Sam Khater, Freddie Mac's chief economist. (Jinshi)