"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 4.14% at midday Wednesday, down a touch from last week's 4.15%."
"Mortgage rates began easing in July in anticipation of a series of Fed rate cuts, which began in September and continued this month. The Fed doesn't set mortgage rates, but when it cuts its short-term rate that can signal lower inflation or slower economic growth ahead, which can drive investors to buy U.S. government bonds. That can help lower yields on long-term U.S. Treasurys, which can result in lower mortgage rates."
The average 30-year U.S. mortgage rate dipped to 6.15% from 6.18% last week, the lowest 2025 average since October 3, 2024. The 15-year fixed-rate mortgage fell to 5.44% from 5.50% a week earlier, down from 6.13% a year ago. Mortgage rates generally track the 10-year Treasury yield, which stood at 4.14% midday Wednesday. Rates began easing in July ahead of Federal Reserve rate cuts that began in September and continued this month, which can lower long-term yields and mortgage rates, though Fed cuts do not always translate directly into lower mortgage rates.
Read at www.mercurynews.com
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