US mortgage rates drop to 6.17%, lowest since early October 2024
This follows Fed’s widely anticipated quarter-point reduction; home sales are flat despite growing inventories
[BOSTON] Mortgage rates in the US fell for a fourth week, inching closer to 6 per cent even as economic uncertainty is keeping buyers pinned to the sidelines.
The average for 30-year fixed loans was 6.17 per cent, down from 6.19 per cent last week and still the lowest level since early October 2024, data from Freddie Mac showed.
Rates fell following the US Federal Reserve’s widely anticipated quarter-point reduction on Wednesday (Oct 29). Chairman Jerome Powell also cautioned investors not to expect more cuts this year.
The drop in borrowing costs, along with a surging stock market, would typically predict a surge in demand, and economists had expected to see a slight increase in pending sales of existing homes last month.
That did not happen: Sales were flat, despite growing inventories, the market blunted by anxieties about tariffs, job security and the ongoing government shutdown.
Rates are not likely to move much lower “absent surprisingly slower economic activity”, Realtor.com chief economist Danielle Hale said, noting that the market has already priced in the most recent cut.
Economic concerns “could also mean rising rates through the end of the year”, said Bright MLS economist Lisa Sturtevant. “For prospective buyers who are financially ready, right now could be a sweet spot for lower rates and more inventory”. BLOOMBERG
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