Mortgage rates remain favorable for potential homebuyers this week. They ticked higher but stayed near yearly lows. The average 30-year fixed rate rose modestly. Freddie Mac reported the new average at 6.22%. This figure increased from last week’s 6.19%. Importantly, rates remain favorable compared to this year’s average. The year-to-date average sits much higher at 6.62%. Chief economist Sam Khater highlighted this positive balance.
Furthermore, the 15-year fixed mortgage also increased. Its average rate moved to 5.54% this week. This rate rose from the previous reading of 5.49%. These changes follow a recent Federal Reserve decision. Policymakers cut the benchmark interest rate again. The Fed lowered it by twenty-five basis points. This marks their third consecutive cut this year.
Consequently, mortgage rates often follow the ten-year Treasury yield. This yield hovered around 4.15% on Thursday. The Fed’s actions do not directly control mortgage rates. However, they significantly influence broader market expectations. Investor attention now turns to upcoming labor data. This information could guide the future path for rates.
Meanwhile, experts see potential for further declines ahead. Continued weaker labor data may support this trend. Controlled inflation figures would also help considerably. These conditions might break the recent holding pattern. Therefore, current rates remain favorable for market activity. They provide relative affordability amid high home prices. The housing market continues seeking a stable footing.
