US 30-Year Fixed Mortgage Rates Drop to 6.35%, Largest Weekly Decline in Year

Mortgage rates in the United States have experienced their largest weekly drop in over a year, with the 30-year fixed rate falling to 6.35%, down from 6.5% the previous week, according to Freddie Mac. This decline reflects falling 10-year Treasury yields and has contributed to the highest year-over-year growth in home purchase applications in more than four years, signaling increased buyer interest. Despite the decline, affordability challenges persist due to rising home prices, limiting the impact of lower rates on actual purchasing power. The drop has also sparked a surge in refinancing demand, with some lenders reporting record single-day refinancing volumes and preparing to meet increased activity. Experts suggest this trend may continue if the Federal Reserve cuts interest rates as anticipated, potentially boosting both refinancing and home purchase markets. However, while rates are falling, market volatility and economic uncertainties remain factors to watch.