U.S. Mortgage Rate Drops, Nearing 2024 Low

The average long-term mortgage rate in the United States has declined again, moving closer to its lowest point this year. This week, the average rate on a 30-year home loan fell to 6.19%. The rate has decreased for two consecutive weeks, providing some relief for potential homebuyers. Mortgage rates generally follow the yield of the 10-year U.S. Treasury note. That yield is influenced by expectations for future inflation and global demand for safe investments. Lower borrowing costs can make home purchases more affordable. However, rates remain significantly higher than the 2% average seen just two years ago, which continues to limit market activity.