The 15-year FRM also saw a decrease, averaging 6.17%, down from 6.25% last week and 6.30% a year ago.
“Following June’s jobs report, which showed a cooling labor market, the 10-year Treasury yield decreased this week, and mortgage rates followed suit,” Sam Khater, Freddie Mac’s chief economist, said in the PMMS report.
Khater also pointed to a boost in housing inventory, including properties with price reductions, as a positive sign for potential buyers.
“Companies are slowing down their pace of hiring, which is the result that the Federal Reserve is looking for. Mortgage rates fell on the prospect of one or two Fed rate cuts this year,” added NerdWallet mortgage expert Holden Lewis.
While mortgage rates are down, affordability remains a concern. Rising shelter inflation, a key component tracked by the Fed, continues to put upward pressure on housing costs.
Source: mpamag.com