Average long-term US mortgage rate ticks up for second straight week, to 6.34%

Core Insights - The average rate on a 30-year U.S. mortgage has increased for the second consecutive week, rising to 6.34% from 6.3% last week, compared to 6.12% a year ago [1] - The housing market has been experiencing a slump since 2022, with sales of previously occupied U.S. homes reaching their lowest level in nearly 30 years last year [5] - The recent increase in mortgage rates may indicate a potential repeat of last year's trend, where rates fell initially after a Fed rate cut but then rose again shortly thereafter [6][7] Mortgage Rate Influences - Mortgage rates are affected by various factors, including the Federal Reserve's interest rate policies and bond market expectations regarding the economy and inflation [2] - The 10-year Treasury yield, which influences mortgage pricing, was at 4.10% at midday Thursday, down from 4.19% the previous week [3] Federal Reserve's Position - Fed Chair Jerome Powell has indicated a cautious approach to future interest rate cuts, contrasting with some committee members advocating for quicker cuts [4] - The Fed's recent rate cut does not guarantee a continued decline in mortgage rates, despite signals of more cuts ahead [7] Refinancing Trends - The decline in mortgage rates has prompted many homeowners who purchased homes in recent years to consider refinancing to lower rates [7] - For refinancing to become attractive to a broader range of homeowners, mortgage rates need to fall below 6%, as approximately 81% of U.S. homes have mortgages with rates of 6% or lower [8]