The average interest rate on a 30-year U.S. mortgage fell again this week, edging closer to its lowest point of the year and offering modest relief for prospective homebuyers.
The national average slipped to 6.19%, down from 6.23% the previous week. One year ago, the average stood at 6.69%. This marks the second consecutive weekly decline after three straight weeks of increases and places rates near their lowest level since late October, when they briefly dipped to 6.17%, the lowest point in more than a year.
Rates for 15-year fixed-rate mortgages, which are often used by homeowners looking to refinance, also declined. The average dropped to 5.44% from 5.51% last week. A year ago, the 15-year rate averaged 5.96%.
Mortgage rates are shaped by a mix of factors, including Federal Reserve policy, inflation expectations, and bond market activity. They generally track the movement of the 10-year Treasury yield, which serves as a benchmark for long-term borrowing costs. On Thursday, the 10-year yield hovered around 4.1%, slightly higher than the prior week.
Lower mortgage rates can expand purchasing power for buyers by reducing monthly payments. That dynamic helped support sales of previously owned homes in October, marking the fourth straight month of year-over-year gains. Still, many buyers remain challenged by high home prices that surged over the past several years.
Broader economic uncertainty is also weighing on demand. While overall economic growth remains steady, the job market has shown signs of cooling, with slower hiring and a slight uptick in unemployment making some would-be buyers hesitant to commit.
Mortgage rates began easing earlier this summer ahead of the Federal Reserve’s decision in September to cut its benchmark interest rate for the first time in a year, followed by another cut in October. Many investors now expect another rate reduction when policymakers meet next week. However, the Fed does not directly set mortgage rates, and even when it lowers short-term rates, home loan rates do not always move lower in tandem.