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<\/p>\n Email Link<\/p>\n \n After months of sitting out a sluggish housing market, would-be buyers may finally have a reason to jump in: Borrowing rates are tumbling.\n <\/p>\n \n The 30-year fixed mortgage rate averaged 6.35% for the week ending September 11, down from 6.50% last week, according to data released Thursday by Freddie Mac.\n <\/p>\n \n That\u2019s the sharpest weekly drop in rates so far this year.\n <\/p>\n \n The fall in home borrowing costs comes as the bond market flashes signals that the US economy may be deteriorating more than expected, after new data suggested that the US labor market was much weaker than previously thought<\/a>.\n <\/p>\n \n \u201cIn anticipation that the Federal Reserve will cut interest rates aggressively in the coming months to support the economy, investors have driven mortgage rates lower,\u201d said Zillow senior economist Kara Ng.\n <\/p>\n \n The Fed doesn\u2019t directly set home borrowing costs. Rather, mortgage rates track the 10-year Treasury yield, which fell this week, trading at the lowest levels since April, when President Donald Trump\u2019s tariff announcement sparked fears of an economic slowdown<\/a>.\n <\/p>\n \n The drop in mortgage rates may inject fresh energy into a stalled housing market<\/a>, though. Turned off by elevated mortgage rates, surging insurance costs and stubbornly expensive listings, an increasing number of would-be buyers have chosen to sit on the sidelines this year.\n <\/p>\n \n But demand for mortgages surged to a three-year high last week, with purchase and refinance applications both moving higher, according to a Wednesday report from the Mortgage Bankers Association.\n <\/p>\n
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