The average United States mortgage rate has eased back to its lowest in around a year to 6.3%.
The average 30-year U.S. mortgage rate fell from 6.34% last week to 6.3% this week and averaged 6.32% last year, according to mortgage buyer Freddie Mac.
The 15-year fixed rate mortgage also dropped from 5.55% last week to 5.53%. It was 5.41% the same time last year.
Mortgage rates have continued to ease as the Federal Reserve resumed cutting interest rates amid a stagnant labour market filled with low layoffs and lacklustre hiring.
There has been no surge in home loan applications as homeowners take advantage of lower borrowing costs to refinance.
Despite this, Redfin, a separate real estate company, confirmed that buyers remain hesitant, with pending home sales decreasing to 1.3% from a year ago in September, marking the largest drop in five months.
“The typical home that sells is taking 48 days to go under contract, a week longer than last year and the longest September span since 2019,” Redfin said.
Redfin also revealed that many Americans looking to buy a home were waiting for mortgage rates to drop further before entering the market.
"Some prospective buyers are also wary of making a big purchase while the economy is uncertain, with the government shutdown and recent weak jobs reports making some Americans insecure about their finances," Redfin said.
