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Mortgage rates fall for first time in six weeks
Freddie Mac data show the average 30-year rate slipped to 6.67%, after weaker jobs and cooling inflation boosted expectations the Fed will pause in September.
Mortgage rates edged down this week, ending a six-week streak of gains, as recent US data pointed to a cooling economy and less inflation pressure. Yahoo Finance reports the average 30-year mortgage rate was 6.67% for the week through Wednesday, down from 6.69% a week earlier, according to Freddie Mac. The report ties the move to weaker employment data and signs that inflation has cooled. It says a new jobs report showed the US unexpectedly lost jobs in July, while annual inflation cooled slightly, both of which lowered the odds the Federal Reserve will raise its benchmark interest rate next month. While the Fed does not directly set mortgage rates, the article notes that rate expectations can influence them because the 10-year Treasury yield, which mortgage rates closely track, was little changed this week. Zillow economist Kara Ng said the latest jobs and inflation data reduced pressure for the Fed to hike and gave it room to pause. Ng also warned that borrowing costs remain elevated, with Zillow forecasting mortgage rates falling only to 6.5% by year end, which she said is likely to slow housing activity in the second half. The article describes the numbers as national averages rounded to the nearest hundredth.