\n Americans frustrated by high home borrowing rates may have gotten some welcome news this week.\n <\/p>\n
\n The average 30-year fixed mortgage rate dropped to 6.19% for the week ending October 23, down from 6.27% last week, according to Freddie Mac data released Thursday.\n <\/p>\n
\n After years of sluggish activity, sidelined homebuyers may finally be ready to jump back in, with mortgage rates now at their lowest level in more than a year and home prices softening across many major metro areas.\n <\/p>\n
\n \u201cAt the start of 2025, the 30-year fixed-rate mortgage surpassed 7%, while today it hovers nearly a full percentage point lower,\u201d Sam Khater, Freddie Mac\u2019s chief economist, said in a statement.\n <\/p>\n
\n With the government shutdown halting most economic data, the sharp one-week drop in mortgage rates stands out as one of the few indicators still being released. Freddie Mac, despite being under federal conservatorship, isn\u2019t affected by the shutdown and continues to publish its weekly survey.\n <\/p>\n
\n Home borrowing rates are falling as markets see an October rate cut by the Federal Reserve as a \u201cnear certainty,\u201d said Kara Ng, a senior economist at Zillow Home Loans.\n <\/p>\n
\n \u201cWith signs of softer economic momentum and a deteriorating labor market, mortgage rates may drift slightly lower through 2026,\u201d Ng said. \u201cStill, Zillow expects the 30-year fixed rate to remain confined within the 6%\u20137% range observed in recent years.\u201d\n <\/p>\n
\n While the Fed doesn\u2019t control mortgage rates, its actions can influence them by affecting the 10-year Treasury yield.\n <\/p>\n
\n Lower mortgage rates and softer home prices might be improving the housing affordability picture for many Americans still looking to break in to homeownership.\n <\/p>\n