Average US long-term mortgage rate rises again, inching up to 6.24%

Mortgage Rate Trends - The average rate on a 30-year U.S. mortgage increased to 6.24% from 6.22% last week, compared to 6.78% a year ago, indicating a slight upward trend [1] - The average rate on 15-year fixed-rate mortgages decreased to 5.49% from 5.5% last week, down from 5.99% a year ago [2] Influencing Factors - Mortgage rates are influenced by the Federal Reserve's interest rate policies, bond market expectations for the economy and inflation, and generally follow the 10-year Treasury yield, which is currently at 4.10% [3] - The average 30-year mortgage rate has remained above 6% since September 2022, contributing to a slump in the housing market [4] Market Activity - Sales of previously occupied U.S. homes reached their lowest level in nearly three decades last year, but showed signs of recovery with an acceleration in September as mortgage rates eased [4] - Applications for home purchase loans increased nearly 6% last week, indicating a potential uptick in market activity despite rising mortgage rates [5] Refinancing Trends - The recent decline in mortgage rates has encouraged homeowners to refinance, with refinancing applications accounting for about 56% of all mortgage applications last week [6] Federal Reserve Actions - The Federal Reserve cut its main interest rate in September and again last month, but further cuts are not guaranteed according to Fed Chair Jerome Powell [7] - Wall Street traders have reduced expectations for a rate cut at the Fed's next meeting in December, now estimating a 53% chance, down from nearly 70% a week ago [8]