US 30-Year Fixed-Rate Mortgage Falls to 6.08%, Lowest Since September 2022, According to Reuters

U.S. Mortgage Rates Reach Two-Year Low, Boosting Refinancing Activity

U.S. mortgage rates have decreased to a two-year low this week, potentially encouraging more homeowners to refinance, although many prospective buyers remain hesitant.

The average rate for a 30-year fixed-rate mortgage fell to 6.08%, down slightly from 6.09% the previous week, marking the lowest level since September 2022, according to data from mortgage finance agency Freddie Mac. This time last year, the average rate was 7.31%.

Sam Khater, Freddie Mac’s chief economist, noted, "With the downward trend in rates, refinance activity is gaining momentum, allowing homeowners to reduce their monthly mortgage payments."

Many individuals interested in purchasing a home are opting to wait, hoping for further rate drops as more economic data becomes available in the upcoming weeks.

Last week, the Federal Reserve lowered interest rates by 50 basis points, bringing the range to 4.75%-5.00%. This marks the first reduction in borrowing costs since 2020, following a series of increases totaling 525 basis points throughout 2022 and 2023.