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Mortgage rates pulled back Thursday to their lowest level in over a year, a day after the Federal Reserve cut interest rates for the second time this year as the government shutdown neared the one-month mark and major companies announced mass layoffs. <\/p>\n
The average rate on 30-year fixed home loans fell to 6.17% for the week ending Oct. 30, down from 6.19% the week before, according to Freddie Mac. Rates averaged 6.72% during the same period in 2024.<\/p>\n
“Mortgage rates decreased for the fourth consecutive week,” says Sam Khater<\/strong>, Freddie Mac’s chief economist. “The last few months have brought lower rates and homebuyers are increasingly entering the market.”<\/p>\n At the Federal Open Market Committee\u00a0(FOMC)\u00a0on Wednesday, the Fed’s Board of Governors voted 10-2 to cut the Fed\u2019s overnight rate by a quarter of a percentage point, down to a range of 3.75% to 4%\u2014the lowest in nearly three years.\u00a0<\/p>\n This latest rate cut was widely anticipated and largely priced into mortgage rates, which have been easing in recent months. <\/p>\n However, in his post-meeting remarks, Fed Chair Jerome Powell <\/strong>stressed that another rate cut in December is not guaranteed. <\/p>\n “A further reduction in the policy rate at the December meeting is not a foregone conclusion. Far from it,” he said.<\/p>\n Realtor.com\u00ae senior economic research analyst Hannah Jones<\/strong> says in response to Powell\u2019s comment, the 10-year Treasury yield moved higher, indicating that mortgage rates could face renewed upward pressure in the weeks ahead.<\/p>\n “Mortgage rates have fallen 87 basis points from their mid-January peak, offering meaningful relief for sidelined buyers and homeowners considering refinancing,” says Jones.<\/p>\n While the housing market remains challenging for many households, stable home prices, growing inventory, and a slower market pace may open the door for buyers looking to make a move before the year\u2019s end.<\/p>\n