Mortgage rates fall today latest news: Mortgage rates hit one-year low: 30-Year mortgage rate falls to 6.19% – should you buy a home now?
Freddie Mac: Mortgage rates nearly one percentage point lower than early 2025
“At the beginning of 2025, a 30-year fixed-rate mortgage exceeded 7%, but today it is running almost a full point lower,” Sam Khater, Freddie Mac’s chief economist, said, as quoted by CNN.
The drop comes as home prices soften in many major metro areas, prompting sidelined buyers to consider re-entering the market, according to the report.
With the government shutdown, the decrease in mortgage loan interest rates draws attention
The sharp one-week decline is particularly notable as the ongoing federal government shutdown limits the release of most economic data, as reported by CNN. Freddie Mac, which is still under federal conservatorship, continues to publish its weekly mortgage survey despite the shutdown, according to the report.
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Mortgage interest rates are expected to remain in the 6-7% range
Economists think the trend may continue. Kara Ng, senior economist at Zillow Home Loans, stated that markets view the Fed’s October interest rate cut as “almost certain,” as quoted by CNN. “As economic momentum weakens and the labor market deteriorates, mortgage interest rates may drop slightly by 2026,” Ng said. “Nevertheless, Zillow expects the 30-year fixed interest rate to remain within the 6-7% range observed in recent years, according to CNN.” Although the Fed does not directly set mortgage rates, its actions can influence them through the 10-year Treasury yield, which in turn affects them. borrowing costs, according to the report. ALSO READ: Coca-Cola recall hits Texas: FDA issues warning about these products due to contamination – check if your soda can is affected
Falling mortgage rates increase home affordability for buyers
According to a CNN report, lower housing prices and lower housing prices are increasing affordability for many Americans. According to Redfin, the typical home sold in September was priced under 1.4%, the biggest September discount since 2019, CNN reported.
Buyers are starting to take advantage of this opportunity. According to the report, existing home sales in September increased at the fastest rate in the last seven months, according to the National Association of Realtors.
“As expected, falling mortgage rates are driving home sales,” NAR chief economist Lawrence Yun said, adding, “Improving housing affordability is also contributing to increased sales,” CNN reported.
FAQ
What is the current average mortgage rate in the US?
The average 30-year fixed mortgage rate is 6.19%, according to Freddie Mac.
Why did mortgage loan interest rates fall this week?
Interest rates have fallen due to expectations of a Fed rate cut and signs that the economy is cooling.
