US Mortgage Rates Hit 6.69% Lowest Level Since October

US mortgage rates have fallen again, reaching their lowest level since late October. The average rate on a 30-year mortgage dropped to 6.69%, from 6.81% last week, according to Freddie Mac. This is the lowest rate since October 24, when it was at 6.54%.

The drop in rates is attributed to the Federal Reserve’s actions and the trajectory of inflation. Many expect that the Fed will cut its main interest rate again when it meets in two weeks.

Despite this, mortgage rates remain high, making homeownership out of reach for many would-be homebuyers. US home sales are on track for their worst year since 1995. However, applications for a home loan have been rising, with the Mortgage Bankers Association’s seasonally adjusted index of purchase loan applications reaching its highest level since January.

Housing economists predict that the average rate on a 30-year mortgage will generally hover around 6.5% next year. This means that even if rates drop further, many buyers may still be priced out due to high home prices.

The recent strength in purchase activity is supported by lower rates and higher inventory levels, which are giving prospective buyers more options compared to earlier in the year. However, with home prices near all-time highs and expected to rise, many would-be homebuyers are likely holding out for further rate easing.

Source: https://apnews.com/article/mortgage-rates-housing-interest-financing-home-loan-71136a7175c6e997db62655ec697abe1