Mortgage rates fall to under 7.25 percent

Mortgage rates fall to under 7.25 percent

Mortgage rates declined for the second straight week , providing prospective homebuyers with a bit of relief in a pricey housing market.

The average 30-year fixed mortgage rate was 7.24 percent this week , down from 7.32 percent last week, according to new data from Freddie Mac.

The average 30-year mortgage rate previously dipped from 7.4 percent during the week ending on Oct. 15 to last week.

Mortgage rates have risen overall this year, as higher oil prices due to the Iran war and a bond market sell-off pushed up borrowing costs. The 10-year U.S. Treasury bond yield, which the average 30-year mortgage rate tracks closely, is down roughly 5 basis points as of Thursday afternoon.

The average 30-year mortgage rate had not declined for two straight weeks since August, when it dipped from 6.69 percent to 6.65 percent across a 14-day span. At the start of this year, the average 30-year rate was less than 6.2 percent .

The average 15-year fixed mortgage rate, meanwhile, declined for the third straight week, falling to 6.6 percent .

President Trump and administration officials have taken a slew of actions geared toward housing ahead of the midterms, as Republicans face economic headwinds with voting already underway.

Trump signed an executive order last Thursday directing his administration to create a pilot program to cancel insurance premiums for government-backed mortgages once a borrower has satisfied equity requirements.

That same day, the Treasury Department proposed barring institutional investors from buying single-family homes. The department proposed the regulations under a bipartisan housing law Congress passed over the summer — a measure the president refused to sign due to Senate Republicans’ inability to pass voter ID legislation.

Also on Thursday, the National Association of Realtors (NAR) reported that home prices rose in 78 percent of metro markets in the third quarter, down from 80 percent in the second quarter.

Dr. Lawrence Yun, the NAR’s chief economist, noted while affordability challenges are “causing the housing market to stagnate,” home prices “continue to set record highs in most parts of the country.”

Yun added, “Homeowners are the beneficiaries of the price gains. Over the past seven years, the average house has appreciated by $146,000.”

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:

Democratic Sen. Elizabeth Warren (D-Mass.) on Thursday urged the Department of Justice (DOJ) to launch a criminal investigation into Bank of America for its violations of anti-money laundering laws.

The National Links Trust said this week it will cease operations at East Potomac Golf Links, Washington’s most popular public golf course, as President Trump eyes the property for redevelopment.

Utah is bringing criminal charges against Kalshi and two of the company’s top executives, alleging they illegally profited from promoting and offering online gambling within the state.

U.S. economic growth increased in the third quarter, as the surge in artificial intelligence investment continued and consumers kept spending despite persistent inflation.

Upcoming news themes and events we’re watching:

The Bureau of Labor Statistics will release economic cost index data for the third quarter of this year at 8:30 a.m. EST Friday.

Branch out with more stories from the day:

On the Ballot: The 5 key money moves in the priciest midterms yet

With less than a week left in the most expensive midterms ever, the pressure is on for this cycle’s big spending to pay off.

Insiders can read more at the link below.

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

Toast accused by FTC of misleading customers on subscriptions ( Bloomberg )

Home prices fall and rents rise, both for the first time in three years ( CNBC )

The strange math that shows how Trump got Venezuela to ‘gift’ oil to the United States ( CNN )

President Trump will no longer travel to Kansas over the weekend to rally voters as the state’s competitive Senate race enters its final stretch ahead of the midterm election. Read more

Democrats are leading in the Texas and Michigan Senate races, according to new polling. Read more

Opinions related to business and economic issues submitted to The Hill:

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