Mortgage rates rise for first time since July

Group 1: Mortgage Rates - Mortgage rates increased for the first time since mid-July, with the average rate on a 30-year fixed mortgage rising to 6.3% from 6.26% last week [1] - The average rate on a 15-year fixed mortgage also rose to 5.49% from 5.41% last week [4] - Despite the recent uptick, mortgage rates remain near 11-month lows, providing opportunities for buyers and homeowners considering refinancing [5] Group 2: Housing Market Activity - Housing market activity remains robust, with purchase applications increasing by 18% and refinance applications rising by 42% compared to the same time last year [4] - Sales of new U.S. single-family homes surged to the highest level in over 3.5 years in August, although this may not accurately reflect the housing market's health [7] - Economists noted that the increase in new home sales was unexpected and may be reversed in the coming months due to volatile data and subdued homebuilder sentiment [9][10] Group 3: Economic Context - The Federal Reserve recently cut the benchmark interest rate by 25 basis points, bringing the federal funds rate to a new range of 4% to 4.25% [6] - The rate cut follows a period of economic uncertainty, during which the Fed left rates unchanged at its first five meetings of the year [6] - The current rate environment is seen as beneficial for affordability, despite only 28% of U.S. homes being affordable for the typical American household [5]