US 30-year fixed-rate mortgage falls to 6.20% By Reuters

WASHINGTON (Reuters) – U.S. mortgage rates fell this week on expectations that the Federal Reserve will begin cutting interest rates next Wednesday, but it is unlikely to provide an immediate boost to the housing market as home prices remain high.

The average rate on the popular 30-year fixed-rate mortgage fell to 6.20 percent, the lowest since February 2023, from 6.35 percent last week, mortgage lender Freddie Mac said Thursday in a statement. It averaged 7.18% over the same period a year ago.

The average rate on a 15-year fixed-rate mortgage fell to 5.27 percent from 5.47 percent last week. That compared to an average of 6.51% a year ago. The US central bank is expected to start the easing cycle with a 25 basis point interest rate cut next week.

“But despite the improving mortgage rate environment, prospective buyers remain on the sidelines as they negotiate a combination of high home prices and persistent supply shortages,” said Sam Khater, Freddie Mac’s chief economist.