Average US long-term mortgage rate falls to 6.23%, ending a three-week climb

Core Insights - The average rate on a 30-year U.S. mortgage has decreased to 6.23% from 6.26% last week, marking a decline from 6.81% a year ago, ending a three-week streak of increases [1] - The average rate on 15-year fixed-rate mortgages also fell to 5.51% from 5.54% last week, down from 6.10% a year ago [2] - The decline in mortgage rates is influenced by the Federal Reserve's interest rate policies and the bond market, particularly the 10-year Treasury yield, which is currently at 4.01% [3] Market Trends - Easing mortgage rates have contributed to a rise in sales of previously occupied U.S. homes for the fourth consecutive month on an annual basis, although affordability remains a significant challenge for many potential buyers [4] - Sales of previously occupied U.S. homes have remained around a 4-million annual pace in 2023, compared to a historical average of approximately 5.2 million [5] Federal Reserve Influence - Mortgage rates began to decline this summer following the Federal Reserve's decision to cut its main interest rate in September, with another cut occurring last month amid signs of a slowing labor market [6] - Speculation is growing that the Federal Reserve may cut interest rates again in December, with Wall Street traders estimating an 83% probability of a cut, although this may not lead to a significant drop in mortgage rates [7]