Mortgage rates decline for first time in 2 months

Mortgage rates decline for first time in 2 months

The average 30-year fixed mortgage rate dipped this week to 7.32 percent , according to new data from Freddie Mac.

© George Walker IV, The Associated Press

That marked a decline from last week’s average rate of 7.4 percent , and the first weekly decline since the week ending on Aug. 20.

The average 30-year mortgage rate has spiked from 5.98 percent the week before the Iran war, as rising bond yields and oil prices have pushed up borrowing costs for prospective homebuyers.

Thirty-year mortgage rates held steady at 7.4 percent last week, a pause after seven consecutive weekly increases. Despite this week’s decline, the average 30-year rate is still higher than it was at the end of all but one week dating to Thanksgiving 2023 .

The average 15-year mortgage rate also declined from 6.71 percent last week to 6.68 percent this week .

High mortgage rates have bottlenecked the housing market, with pending home sales in September falling by 7.3 percent month-over-month and 11.3 percent on an annual basis, according to data from the National Association of Realtors (NAR).

Dr. Lawrence Yun, the chief economist at the NAR, faulted “fast-rising” mortgage rates for the weak housing market in September.

“Although job growth and income gains can support home purchases, housing affordability is more affected by changes in mortgage rates,” Yun said in a statement.

Yun noted that mortgage rates “have already risen much more” than the Federal Reserve’s interest-rate hikes .

Fed officials raised rates by a quarter point last month and will meet again next week to decide whether to hike again amid persistent inflation.

“However, increasing energy prices and the resulting inflationary pressure are highly uncertain ,” Yun acknowledged.

President Trump on Thursday sought to lower housing and mortgage costs via an executive order, which directs Federal Housing Finance Agency (FHFA) Director Bill Pulte to create a pilot program to cancel borrowers’ mortgage insurance premiums once they have satisfied equity requirements.

Trump is also directing Pulte to expand the FHFA’s title insurance waiver pilot into a permanent program , which will provide borrowers with “cost-friendly alternatives” to title insurance, the order states.

Welcome to The Hill’s Business & Economy newsletter , I’m Max Rego — covering the intersection of Wall Street and Pennsylvania Avenue.

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Key business and economic news with implications this week and beyond:

SpaceX founder Elon Musk warned Democrats over a possible congressional probe on Wednesday, writing, “live by the sword, die by the sword.”

Costs are spiking for the millions of Americans who rely on workplace-sponsored health insurance, according to a survey released Thursday, with small businesses and their employees being hit especially hard.

President Trump said Wednesday he asked Google CEO Sundar Pichai to rename the Atlantic Ocean on the company’s Google Maps application — a request the tech executive denied.

Marshall blames Ukraine war for high diesel prices

Sen. Roger Marshall (R-Kan.) on Wednesday blamed the war in Ukraine for high diesel prices, with energy costs as a key concern in the rapidly approaching midterms.

Branch out with more stories from the day:

The Methodist pastor who could flip Kansas and the Senate

Adam Hamilton, the Democratic nominee for Senate in Kansas, went out of his way to welcome President Trump to the state earlier this week.

Business and economic news we’ve flagged from other outlets:

Space Force scrambles as Musk’s SpaceX retires its major rocket ( Politico)

Stablecoin yield rule revives crypto vs. banking industry fight ( Roll Call )

Trump and an oil shock aren’t enough for Texan drillers ( Semafor)

Defense Secretary Pete Hegseth’s team dropped and damaged a historic World War II-era globe previously used by Gen. Dwight D. Eisenhower, a source familiar with the incident told The Hill on Thursday. Read more

Former White House press secretary Karoline Leavitt acknowledged Thursday that her successor Katie Zacharia, who stepped down after less than a week as press secretary, was not a good fit for the job. Read more

Check out The Hill’s Business page for the latest coverage.

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