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U.S. 30-year fixed mortgage rates have eased to 6.30% this week, down slightly from last week and near last year's levels. The decline follows renewed Federal Reserve rate cuts amid a stagnant labor market, yet new home loan applications remain low as many homeowners focus on refinancing. Real estate data shows pending home sales fell 1.3% from last year, and homes are taking longer to sell. Buyers are delaying purchases, awaiting further rate reductions, while economic uncertainties, such as weak hiring and potential government shutdowns, are adding to their caution.
Mortgage rates in the United States have edged lower this week, but many potential homebuyers are still hesitant to enter the market due to economic uncertainty and subdued hiring. Freddie Mac reported that the average rate on the popular 30-year fixed-rate mortgage fell to 6.30% from 6.34% last week. Compared with the same period last year, the rate averaged 6.32%, indicating only a slight year-on-year change. Advertisement
The recent decline in mortgage rates follows renewed Federal Reserve interest rate cuts amid a stagnant labor market. Layoffs remain low, yet hiring has been slow, reflecting tepid economic growth. Homeowners are taking advantage of lower borrowing costs primarily to refinance existing loans, while new applications for home loans have not surged.
Data from real estate firm Redfin shows that pending home sales fell 1.3% from last year in September, marking the largest drop in five months. Redfin also reported that the typical home now takes 48 days to go under contract, which is a week longer than last year and the longest September timeframe since 2019.
Redfin agents across multiple regions observed that many prospective buyers are waiting for mortgage rates to decline further before making a purchase. Economic factors, such as weak employment reports and uncertainty about government policies, including potential shutdowns, are also contributing to buyers' reluctance. This cautious behavior underscores that while lower rates offer some relief, broader economic stability is a key factor influencing housing demand.
Source PTI
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