The average rate on a 30-year U.S. mortgage fell again this week, slipping close to its low point so far this year.<\/p>\n\n\n\n
The decline brings the average long-term mortgage rate to 6.19% from 6.23% last week, mortgage buyer Freddie Mac said Thursday. A year ago, the rate averaged 6.69%.<\/p>\n\n\n\n
This is the second straight weekly drop in the average rate after three straight increases. It\u2019s now at the lowest level since Oct. 30, when it was at 6.17%, the lowest level in more than a year.<\/p>\n\n\n\n
Borrowing costs on 15-year fixed-rate mortgages, popular with homeowners refinancing their home loans, also fell this week. The rate averaged 5.44%, down from 5.51% last week. A year ago, it was 5.96%, Freddie Mac said.<\/p>\n\n\n\n
Mortgage rates are influenced by several factors<\/a>, from the Federal Reserve\u2019s interest rate policy decisions to bond market investors\u2019 expectations for the economy and inflation. They generally follow the trajectory of the 10-year Treasury yield, which lenders use as a guide to pricing home loans.<\/p>\n\n\n\n The 10-year yield was at 4.1% at midday Thursday. That\u2019s up from about 4% last Wednesday.<\/p>\n\n\n\n Declining mortgage rates boost homebuyers\u2019 purchasing power.<\/p>\n\n\n\n Easing mortgage rates this fall helped lift sales of previously occupied U.S. homes in October<\/a> on an annual basis for the fourth straight month.<\/p>\n\n\n\n Still, affordability remains a challenge for many aspiring homeowners after years of skyrocketing prices. Uncertainty over the economy and job market are also keeping many would-be buyers on the sidelines.<\/p>\n\n\n\n While U.S. economic growth appears solid<\/a>, hiring is sluggish<\/a> and the unemployment rate has ticked up<\/a>.<\/p>\n\n\n\n Mortgage rates began declining this summer ahead of the Federal Reserve\u2019s decision<\/a> in September to cut its main interest rate for the first time in a year amid signs the labor market was slowing. The Fed lowered its key interest rate again in October<\/a> and the general expectation is now that the central bank will cut its main interest rate when its policymakers meet again next week.<\/p>\n\n\n\n The central bank doesn\u2019t set mortgage rates, and even when it cuts its short-term rates that doesn\u2019t necessarily mean rates on home loans will necessarily decline.<\/p>\n\n\n\n