Mortgage rates drop to 6.3%: Freddie Mac

Mortgage rates Mortgage buyer Freddie Mac said Thursday that interest rates fell for the first time in three weeks this week.

Freddie Mac’s latest primary mortgage market survey, released Thursday, showed the average rate on the benchmark index 30-year fixed mortgage It fell to 6.3% compared to last week’s reading of 6.34%.

The average interest rate on a 30-year loan was 6.32% a year ago.

“Over the past few weeks, mortgage rates have held steady at their lowest level in nearly a year,” said Sam Khater, chief economist at Freddie Mac. “There is growing evidence that homebuyers are internalizing these lower rates and are gradually willing to move forward with purchasing a home, boosting purchasing activity.”

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Average rate on 15-year fixed mortgage It fell to 5.53% from last week’s reading of 5.55%.

One year ago, the average interest rate on 15-year fixed bonds was 5.41%.

Lower mortgage rates have brought homebuyers back into the market, but many are still hesitant due to economic uncertainty, the affordability crisis plaguing the United States and the ongoing government shutdown.

“The government shutdown is not only halting paychecks for some federal employees, it is shaking Americans’ financial confidence,” said Darryl Fairweather, chief economist at Redfin. “People across the country are taking the news and thinking: We’ve had inflation, tariffs, job losses, a volatile stock market, and now a government shutdown — what’s next?” “It’s understandable that some people reconsider buying a home or car when the economy feels uncertain.”

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A Separate report Redfin Real Estate confirmed that buyers are still hesitant, noting that pending home sales fell 1.3% from a year ago in September, the largest decline in five months.

“But the buyers are not budging,” Redfin said. “A typical home sold takes 48 days to sign, a week longer than last year and the longest in September since 2019.”

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Redfin said its agents in most parts of the country reported that potential homeowners were waiting for mortgage rates to decline further before returning to the market.

“Some potential buyers are also wary of making a large purchase amidst economic uncertainty, with the government shutdown and recent weak jobs reports making some Americans insecure about their finances,” Redfin said.

Reuters contributed to this report.