Average long-term mortgage rate edges higher to 6.24%

Core Insights - The average rate on a 30-year U.S. mortgage has increased to 6.24%, up from 6.22% last week, but remains lower than the 6.78% average from a year ago [1] - The average rate on 15-year fixed-rate mortgages has decreased to 5.49%, down from 5.5% last week, compared to 5.99% a year ago [2] Mortgage Rate Influences - Mortgage rates are affected by the Federal Reserve's interest rate policies, bond market expectations, and the 10-year Treasury yield, which is currently at 4.10% [3] - The average 30-year mortgage rate has been above 6% since September 2022, contributing to a slump in the housing market [4] Market Activity - Home sales have been sluggish but saw an acceleration in September, attributed to easing mortgage rates [4] - Applications for home purchase loans increased nearly 6% last week, marking the strongest pace since September, despite rising mortgage rates [6] Federal Reserve Actions - The Federal Reserve cut its main interest rate in September and again last month, but further cuts are not guaranteed [7] - Wall Street traders have reduced expectations for a rate cut at the next Fed meeting in December, now estimating a 53% chance, down from nearly 70% [8] Affordability Challenges - Despite a pullback in mortgage rates, affordability remains a significant issue for potential homeowners due to rising home prices [10]