Mortgage rates drop to new three-year low

Core Insights - Mortgage rates have decreased, with the 30-year fixed rate averaging 6.16%, down from 6.23% last week [1] - The 30-year fixed mortgage rate is significantly lower than the previous year's rate of 7.03% [2][7] Current Mortgage Rates - Current mortgage rates for various loan types are as follows: - 30-year fixed: 6.16%, down from 6.18% four weeks ago and 7.03% a year ago, with a 52-week average of 6.57% and a low of 6.16% [2] - 15-year fixed: 5.50%, slightly up from 5.49% four weeks ago and down from 6.24% a year ago, with a 52-week average of 5.79% and a low of 5.49% [2] - 30-year jumbo: 6.33%, down from 6.37% four weeks ago and 7.05% a year ago, with a 52-week average of 6.64% and a low of 6.31% [2] - The average total of discount and origination points for 30-year fixed mortgages is 0.35 [2] Housing Market Trends - Home prices are declining in many previously hot markets, with half of the 50 largest metro areas experiencing price drops over the past year [4] - Increased housing inventory and leveling home prices create a favorable environment for buyers and those looking to refinance [4] Economic Outlook - The Federal Reserve has maintained its benchmark interest rate, with no immediate plans for cuts, influenced by stronger-than-expected labor numbers [5] - Predictions suggest a potential rate cut in the first half of 2026 if inflation remains steady, but job growth could complicate this scenario [6] - Mortgage rates are currently nearly one percentage point lower than a year ago, when they were around 6.9% [7]