US mortgage rates decline for first time since August

The benchmark 30-year fixed-rate mortgage in the United States eased to 7.32% from 7.40% last week, marking the first decline in rates since late August. According to Freddie Mac, the 15-year fixed-rate mortgage also saw a slight decrease, slipping to 6.68% from 7.71%.

Despite this minor pullback, borrowing costs remain significantly higher than the previous year, when the 30-year average was 6.19%. Mortgage rates have been influenced by inflation, Federal Reserve policy, and volatility in the bond market, specifically following the 10-year Treasury yield. Geopolitical tensions, including the conflict between the United States and Iran, have contributed to higher oil prices and inflation, driving rates upward since February.

The high-interest environment has contributed to a stalled housing market. Homeowners with existing loans below 4% are often reluctant to sell and lose their low rates, while prospective buyers face reduced purchasing power due to increased monthly payments.