U.S. mortgage rates decline for second consecutive week

The average 30-year fixed-rate mortgage in the United States fell to 7.24% for the week ending October 29, down from 7.32% the previous week, according to Freddie Mac. This marks the lowest level for the benchmark rate in over a month. The 15-year fixed-rate mortgage also saw a decline, dropping to 6.60% from 6.68%.

While the decrease offers modest relief to prospective buyers, rates remain significantly higher than the 6.17% average recorded a year ago. The downward trend follows a period of rising rates driven by inflation and bond market volatility, partly linked to the impact of the U.S. war with Iran on oil prices and Treasury yields.

Market analysts note that high borrowing costs continue to impact the housing sector. Nearly half of outstanding mortgages carry rates below 4%, creating a lock-in effect where homeowners are hesitant to sell and trade their low rates for current market costs. Additionally, a growing trend of co-buying is emerging as Americans pool financial resources to combat affordability challenges.