Average US long-term mortgage rate barely budges, holding near 6%

Mortgage Rates Overview - The average long-term U.S. mortgage rate remains close to 6%, with the benchmark 30-year fixed rate mortgage rate at 6.11%, slightly up from 6.1% last week and down from 6.89% a year ago [1] - The 15-year fixed-rate mortgage rate increased to 5.5% from 5.49% last week, compared to 6.05% a year ago [2] 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, which is currently at 4.21%, down from 4.23% a week ago [3] - The recent increase in mortgage rates follows the Fed's decision to pause interest rate cuts after three consecutive reductions, which aimed to support the job market [4] Housing Market Conditions - The U.S. housing market has been experiencing a sales slump since 2022 due to rising mortgage rates, high home prices, and a shortage of homes, resulting in sales of previously occupied homes at 30-year lows [5] - A pullback in mortgage rates that began late last summer contributed to a 5.1% increase in existing home sales in December, providing buyers with less competition and more property options [6] Buyer Trends - Nearly two-thirds of homebuyers last year paid less than the original list price, marking the highest share since 2019, indicating a shift in market dynamics [7] - Economists predict that mortgage rates will remain relatively stable, with expectations for the average 30-year mortgage rate to hover around 6% in the coming months [7]