Mortgage rates fall for first time in 3 weeks

Mortgage Rates - Mortgage rates fell for the first time in three weeks, with the average rate on a 30-year fixed mortgage decreasing to 6.3% from 6.34% last week [1] - The average rate on a 15-year fixed mortgage also fell to 5.53% from 5.55% last week [2] Market Activity - There is evidence that homebuyers are responding to lower mortgage rates, leading to an increase in purchase activity [2] - Despite lower rates, many potential buyers remain hesitant due to economic uncertainty and the ongoing government shutdown [3][5] Buyer Sentiment - A report indicated that only 28% of U.S. homes are now affordable for the typical American household, reflecting a drop in buying power [6] - Pending home sales decreased by 1.3% from a year ago in September, marking the largest drop in five months [6] - The typical home is taking 48 days to go under contract, which is a week longer than last year and the longest duration for September since 2019 [7] Economic Concerns - Prospective buyers are waiting for mortgage rates to drop further and are cautious about making significant purchases amid economic uncertainty [8]