Mortgage rates fall to 6.27%: Freddie Mac

Mortgage rates Mortgage buyer Freddie Mac said Thursday that its index fell for the second week in a row.

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 6.27% from last week’s reading of 6.3%.

The average interest rate on a 30-year loan was 6.44% a year ago.

“More importantly, homeowners have noticed these consistently lower rates, which has led to an uptick in refinancing activity,” said Sam Khater, chief economist at Freddie Mac. “In addition to increasing housing inventory and slowing home price growth, these rates also create a more favorable environment for those looking to purchase a home.”

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The average interest rate on a 15-year fixed mortgage fell to 5.52% from last week’s reading of 5.53%.

One year ago, the average interest rate on 15-year fixed bonds was 5.63%.

The average interest rate on a 15-year fixed mortgage fell to 5.52%. (Joe Lamberti/Bloomberg via Getty Images / Getty Images)

Concerns about the job market and uncertainty surrounding the ongoing federal government shutdown continue to impact potential homebuyers, according to Realtor.com chief economist Jiayi Xu.

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“Nationally, purchasing power has declined sharply as home prices and mortgage rates continue to outpace income growth,” Shaw said. “As a result, significant wage gains and improved financial stability will be essential to boost buying sentiment.

Concerns about the job market and uncertainty surrounding the ongoing federal government shutdown continue to impact potential homebuyers. (Ilya Novellaj/Bloomberg via Getty Images/Getty Images)

“However, broader uncertainty caused by the ongoing government shutdown may further weigh on sentiment — especially in markets with a larger share of federal workers and contractors, who face financial pressures and concerns about potential layoffs,” she added.

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While lower mortgage rates have brought homebuyers back into the market, many are still hesitant due to the economic uncertainty and affordability crisis plaguing the United States.