Why are mortgage rates at their lowest level since 2024?
ABC News••business
Key Points:
- Mortgage rates have fallen to their lowest level in 15 months, with the average 30-year fixed mortgage rate dropping to 6.15% from 6.89% in May, easing borrowing costs for homebuyers.
- The decline in rates is partly due to a slowdown in hiring and expectations that the Federal Reserve will continue cutting interest rates to support the labor market, with the benchmark rate now between 3.5% and 3.75%.
- Despite the rate drop, many current homeowners face a "lock-in" effect, as their existing mortgage rates remain lower than current rates, limiting housing supply and keeping prices steady.
- Economic data presents a mixed outlook, with sluggish hiring and rising unemployment balanced by strong GDP
