US Mortgage Rates Hit One-Month Low

Freddie Mac reported that average long-term US mortgage rates declined for the second consecutive week, reaching their lowest levels in more than a month. The benchmark 30-year fixed-rate mortgage fell to 7.24% from 7.32% the previous week, while the 15-year fixed-rate mortgage dipped to 6.60% from 6.68%.

Despite the recent dip, current rates remain significantly higher than the previous year's averages of 6.17% for 30-year loans and 5.41% for 15-year loans. The current trend follows a period of rising rates that began in late February, a shift that coincided with the start of a US war with Iran, which drove up inflation and oil prices.

Mortgage rates generally track the 10-year Treasury yield, which has eased this month after reaching its highest level since 2002. High borrowing costs have stalled US home sales throughout the year by reducing purchasing power and increasing monthly payments for borrowers.