Mortgage rates hit lowest level in over a year

Core Insights - Mortgage rates have dropped to their lowest level in over a year, with the average 30-year mortgage rate at 6.19% and the 15-year rate at 5.44% [1] - The decline in mortgage rates is attributed to the 10-year Treasury yield falling below 4% and market expectations of potential Federal Reserve rate cuts [1][2] - Existing home sales increased by 1.5% in September, indicating that lower mortgage rates are encouraging buyers to enter the market [6] Mortgage Rate Trends - The average 30-year mortgage rate decreased from 6.27% to 6.19%, while the 15-year rate fell from 5.52% to 5.44% [1] - The 10-year Treasury yield, which influences mortgage rates, has remained below 4% as investors seek safe-haven assets amid concerns of a government shutdown [1] - Market expectations suggest a 99% probability of a 25 basis points rate cut by the Federal Reserve in the upcoming meeting [2] Economic Indicators - The Consumer Price Index data for September is anticipated to be released soon, which could impact future mortgage rates depending on inflation trends [5] - A hotter-than-expected inflation report may lead traders to reassess the Fed's rate-cutting trajectory, potentially increasing mortgage rates [5] - Conversely, lower inflation could further decrease mortgage rates, supporting the housing market [5]