US Mortgage Rates Hit 12-Month Low as Fed Signals Dovish Stance
Freddie Mac's weekly survey shows the 30-year fixed mortgage rate falling to 6.19%, marking the third consecutive decline and the lowest level since October 2024. Refinancing activity remains robust, comprising over half of all mortgage applications for six straight weeks.
The downward trajectory follows the Federal Reserve's September rate cut, with markets pricing in near-certain odds of another reduction in October. "We're seeing the clearest borrowing cost relief since the 2023 tightening cycle," notes Freddie Mac's chief economist Sam Khater, comparing today's rates to the 7% threshold crossed earlier this year.
Fifteen-year mortgage products followed suit, dropping 8 basis points to 5.44%. This credit easing occurs against a backdrop of shifting monetary policy expectations, with analysts anticipating at least one more Fed MOVE before year-end.
