Mortgage rates fall for fourth consecutive week, lowest level in over a year

Mortgage Rates - Mortgage rates have decreased for the fourth consecutive week, with the average rate on a 30-year fixed mortgage falling to 6.17% from 6.19% last week, compared to 6.72% a year ago [1][4] - The average rate on a 15-year fixed mortgage also declined to 5.41% from 5.44% last week, down from 5.99% a year ago [4] Market Dynamics - Nearly 1 in 5 American homes have reduced prices as buyers gain leverage in the shifting market, attributed to lower mortgage rates encouraging more homebuyers to enter the market [2] - The recent decline in mortgage rates, which have fallen 87 basis points from their mid-January peak, has provided relief for potential buyers and homeowners considering refinancing, although the housing market remains challenging due to economic uncertainties and rising house prices [9] Federal Reserve Actions - The Federal Reserve announced a second interest rate cut of the year, lowering the benchmark federal funds rate by 25 basis points to a range of 3.75% to 4%, following a similar cut in September [4] - Fed Chairman Jerome Powell indicated that the ongoing government shutdown may impact the central bank's decision-making process, emphasizing a cautious approach until clearer economic data is available [5][6] Treasury Yields - The benchmark U.S. 10-year Treasury note yield experienced its largest daily rise since June 6, increasing by about 2.3 basis points to 4.095%, which closely influences mortgage rates [8]