30-Year Mortgage Rates Plunge to Their Lowest Since October: What It Means for Homebuyers

The average rate on a 30-year mortgage in the U.S. has declined this week, reaching its lowest point in close to 10 months, providing essential encouragement for potential homebuyers and possibly revitalizing a sluggish housing market. According to Freddie Mac, the long-term rate decreased to 6.58% from 6.63% last week; a year earlier, it averaged 6.49%. Moreover, 15-year fixed-rate mortgages have also seen a drop, with averages falling to 5.71% from 5.75%. Elevated mortgage rates have contributed to a sales downturn in the housing sector, which recorded its lowest sales figures in nearly three decades due to rising borrowing costs since early 2022. Notably, the average 30-year rate has now remained low since late October, influenced by the Federal Reserve’s policies and bond market expectations. While inflation remains a concern with recent reports indicating significant wholesale price jumps, a potential Fed rate cut could impact the overall economic landscape, albeit with cautious anticipation among economists regarding mortgage affordability.