Mortgage rates fall to 6.17%: Freddie Mac

Mortgage rates Mortgage buyer Freddie Mac said Thursday that its index fell for the fourth straight week.

Freddie Mac’s latest primary mortgage market survey, released Thursday, showed the average rate on the benchmark index 30-year fixed mortgage It fell to 6.17% from last week’s reading of 6.19%.

The average interest rate on a 30-year loan was 6.72% a year ago.

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“The past few months have led to lower interest rates, and homebuyers are increasingly entering the market,” said Sam Khater, chief economist at Freddie Mac.

The average interest rate on a 15-year fixed mortgage fell to 5.41% from last week’s reading of 5.44%.

One year ago, the average interest rate on 15-year fixed bonds was 5.99%.

These declines come a day after the Federal Reserve announced it would cut interest rates for the second time this year. Fed policymakers voted to cut the federal funds rate by 25 basis points to a new range of 3.75% to 4%. The move follows a rate cut of this size in September, which was the first cut of the year.

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Chairman of the Federal Reserve Bank Jerome Powell The central bank said on Wednesday that it remains unclear whether the ongoing government shutdown and resulting lack of key economic data will impact the central bank’s December meeting.

With key indicators still missing due to the lockdown, Powell said the Fed will move cautiously until it has a clearer view of the economy.

“If you drive in fog, you slow down,” he said at the conclusion of the two-day Federal Open Market Committee meeting. The FOMC’s next policy meeting is scheduled for December 9-10.

These declines come a day after the Federal Reserve announced it would cut interest rates for the second time this year. (Ilya Novellaj/Bloomberg via Getty Images)

The benchmark yield on the 10-year US Treasury note on Wednesday achieved its largest daily rise since June 6. It rose about 2.3 basis points to 4.095% on Thursday. Mortgage rates closely track the 10-year Treasury yield.

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“Mortgage rates are down 87 basis points from their peak in mid-January, providing significant relief to marginal buyers and homeowners considering refinancing,” said Hannah Jones, senior economic research analyst at Realtor.com. “While the housing market remains challenging for many families, stabilizing home prices, growing inventory, and a slowing market pace may open the door for buyers looking to move before the end of the year.”

The recent decline in mortgage interest rates was not enough to stimulate the housing market, against the backdrop of a weak labor market, growing economic uncertainty, and housing prices continuing to rise. However, lower mortgage rates have boosted refinancing of existing home loans.

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FOX Business’ Amanda Macias and Reuters contributed to this report.