Mortgage Rates Decline For Fourth Straight Week

News Release

WASHINGTON, D.C. – U.S. mortgage rates have declined for a fourth consecutive week, offering prospective homebuyers some relief as borrowing costs remain elevated and housing affordability continues to challenge the market.

The average rate on a 30-year fixed mortgage fell to 7.11%, down from 7.18% the previous week, reaching its lowest level since late September. The average rate on a 15-year fixed mortgage also decreased, falling from 6.57% to 6.45%.

Despite the recent declines, mortgage rates remain above 7%, significantly higher than levels seen earlier in the year, when rates briefly dipped below 6%. A borrower financing a $400,000 mortgage now faces approximately $300 more in monthly payments compared with borrowing at those lower rates.

The easing follows a retreat in Treasury yields after the 10-year Treasury yield climbed above 5.3% earlier in October. Geopolitical tensions involving Iran and the United States contributed to higher energy prices and renewed inflation concerns, pushing bond yields and borrowing costs upward.

Mortgage rates are not directly determined by the Federal Reserve, but investors closely monitor the central bank’s decisions, inflation trends and economic conditions for indications of future borrowing costs. Federal Reserve policymakers recently left short-term interest rates unchanged, although persistent inflation has raised expectations of another increase in December.

The housing market continues to face prolonged weakness. Existing-home sales recently fell to their slowest annual pace in more than 16 years, while last year’s sales remained near a three-decade low. The downturn began in 2022 as mortgage rates climbed from pandemic-era lows.