Core Insights - The average rate for a 30-year fixed mortgage has decreased to 6.19%, down from 6.27% the previous week, marking the lowest level in over a year [10][12] - The decline in mortgage rates is attributed to expectations of a Federal Reserve rate cut and signs of a cooling economy [11][12] Mortgage Rate Trends - The 30-year fixed-rate mortgage rate was above 7% at the start of 2025, but has now dropped nearly a full percentage point [1] - Economists predict that mortgage rates may continue to decline slightly through 2026, but will likely remain within the 6%–7% range [5][6] Housing Market Impact - The decrease in mortgage rates, combined with softening home prices, is improving affordability for buyers [8] - In September, the typical home sold for 1.4% below asking price, the largest discount for that month since 2019 [8] - Sales of existing homes in September rose at the fastest pace in seven months, indicating a positive response from buyers [8][9] Economic Context - The sharp drop in mortgage rates is notable amid an ongoing federal government shutdown, which has limited the release of most economic data [3] - Freddie Mac continues to publish its weekly mortgage survey despite the shutdown, reflecting its ongoing role in the mortgage market [3]
Mortgage rates hit one-year low: 30-Year mortgage rate falls to 6.19% - should you buy a home now?
The Economic Times·2025-10-24 00:04