"The average long-term mortgage rate slipped to 6.27% from 6.3% last week, mortgage buyer Freddie Mac said Thursday. A year ago, the rate averaged 6.44%. The latest dip brings the average rate to just above 6.26%, where it was four weeks ago after a string of declines brought down home loan borrowing costs to their lowest level since early October 2024."
"Mortgage rates are influenced by several factors, from the Federal Reserve's interest rate policy decisions to bond market investors' expectations for the economy and inflation. They generally follow the trajectory of the 10-year Treasury yield, which lenders use as a guide to pricing home loans. The 10-year yield was at 4.02% at midday Thursday, down from around 4.14% the same time last week."
"Mortgage rates started declining in July in the lead-up to the Federal Reserve's decision last month to cut its main interest rate for the first time in a year amid growing concern over the U.S. job market. At their September policy meeting, Fed officials forecast that the central bank would reduce its rate twice more this year and once in 2026. Still, the Fed could change course if inflation jumps amid the Trump administration's expanding use of tariffs."
The average 30-year mortgage rate fell to 6.27% from 6.3% last week, slightly below a year-ago 6.44%. The rate sits near 6.26% after recent declines. The 15-year fixed-rate average dropped to 5.52% from 5.53%, compared with 5.63% a year earlier. Mortgage rates tend to follow the 10-year Treasury yield, which was 4.02% midweek, down from about 4.14% the prior week. Rates began easing in July ahead of a recent Federal Reserve rate cut, and Fed forecasts call for additional cuts, though inflation or trade-driven tariff changes could alter that path.
Read at The Mercury News
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