Average US long-term mortgage rate falls to the lowest level of the year at 6.15%

Mortgage Rates Overview - The average rate on a 30-year U.S. mortgage fell to 6.15%, down from 6.18% last week, and significantly lower than the 6.91% average a year ago [1] - The average rate on 15-year fixed-rate mortgages decreased to 5.44% from 5.50%, compared to 6.13% a year ago [1] Influencing Factors - Mortgage rates are influenced by the Federal Reserve's interest rate policy, bond market expectations for the economy and inflation, and generally follow the 10-year Treasury yield [2] - The 10-year Treasury yield was at 4.14%, slightly down from 4.15% the previous week [2] Recent Trends - The average rate on a 30-year mortgage has been stable since dropping to 6.17% on October 30, the lowest level in over a year [3] - Mortgage rates began to ease in July in anticipation of Federal Reserve rate cuts, which started in September and continued into October [3] Federal Reserve's Role - The Federal Reserve does not set mortgage rates directly, but its short-term rate cuts can signal lower inflation or slower economic growth, influencing long-term Treasury yields and mortgage rates [4] - However, Fed rate cuts do not always lead to lower mortgage rates [4] Market Conditions - Home shoppers with cash or financing at current mortgage rates are in a better position than a year ago, with a significant increase in home listings and many sellers lowering their asking prices [5] - Affordability remains a challenge for first-time buyers, particularly due to economic uncertainty and job market conditions [6] Sales Performance - Sales of previously occupied U.S. homes rose in November compared to the previous month but slowed year-over-year for the first time since May, despite low average long-term mortgage rates [7] - Home sales are down 0.5% for the first 11 months of the year compared to the same period last year, with economists forecasting the average 30-year mortgage rate to remain slightly above 6% next year [7]