US Mortgage Rates Slide to One of Lowest Levels Since 2022

Core Insights - US mortgage rates have decreased significantly, with the 30-year mortgage rate dropping to 6.18%, the lowest since September 2024 and one of the lowest since 2022 [1] - The five-year adjustable mortgage rate fell to 5.42%, marking the second-lowest level since May 2023 [2] - The Mortgage Bankers Association (MBA) reported a nearly 16% increase in the purchase index, reaching the second-highest level since February 2023, while the refinancing gauge surged over 40%, the highest since September [2] Housing Market Dynamics - The decline in mortgage rates is providing relief to a housing market that has struggled with affordability issues in recent years [3] - Government data indicated that the annualized pace of new-home sales in October was among the strongest since 2023, supported by builder incentives and price reductions [3] Policy Initiatives - President Donald Trump has proposed measures to enhance housing affordability, including a ban on institutional investors purchasing single-family homes and directing Fannie Mae and Freddie Mac to buy $200 billion in mortgage bonds to lower financing costs [4] - The MBA survey, which has been conducted weekly since 1990, reflects responses from a wide range of mortgage lenders, covering over 75% of all retail residential mortgage applications in the US [4]