Mortgage Rates Dip to 6.268%, Lowest Since October

Lead U.S. 30-year fixed-rate mortgages fell to an average of 6.268% on Sept. 12, down 5 basis points from the day prior and 21 basis points from a week ago, marking the lowest level since October 2024.

Nut Graf This unexpected easing in borrowing costs comes as buyers face high home prices and limited inventory, potentially igniting stalled purchase decisions and giving a boost to housing demand ahead of the Federal Reserve’s next policy meeting.

Market Details

• 30-year jumbo loans averaged 6.618%, down 6 basis points week-over-week.
• Government-backed 30-year FHA, VA and USDA rates also declined, standing at 6.115%, 5.847% and 6.115%, respectively-a welcome relief for first-time and lower-income buyers.
• 15-year conventional mortgages fell to 5.370%, the most affordable option for refinancing homeowners.

Why Rates Are Falling Economists attribute the dip to mixed inflation signals and anticipation of modest Fed rate cuts later this month. Mortgage-backed security purchases have crept higher, tightening spreads and nudging lenders to offer slightly more competitive pricing.

Impact on Buyers and Sellers Lower rates may encourage prospective buyers who have delayed purchases due to near-7% borrowing costs. Sellers could see renewed interest in listings, easing the slowdown in home sales and price growth experienced over the summer.

Outlook While rates remain elevated by historical standards, experts warn they could climb again if inflation unexpectedly resurges or global economic risks intensify. Buyers are urged to compare multiple lender offers and explore rate-buydown options to lock in favorable terms.