{"id":137422,"date":"2025-09-06T16:14:12","date_gmt":"2025-09-06T16:14:12","guid":{"rendered":"https:\/\/www.newsbeep.com\/us\/137422\/"},"modified":"2025-09-06T16:14:12","modified_gmt":"2025-09-06T16:14:12","slug":"mortgage-rates-hit-11-month-low-increasing-optimism-for-buyers","status":"publish","type":"post","link":"https:\/\/www.newsbeep.com\/us\/137422\/","title":{"rendered":"Mortgage rates hit 11-month low, increasing optimism for buyers"},"content":{"rendered":"

Mortgage rates<\/a>\u00a0saw yet another modest decrease Thursday, retreating to an 11-month low following the long Labor Day weekend and ahead of Friday\u2019s closely watched release of the latest employment data.\u00a0<\/a><\/p>\n

The average rate on 30-year fixed home loans was 6.5% for the week ending Sept. 4, down from 6.56% the previous week, according to\u00a0Freddie Mac<\/a>. <\/p>\n

Rates averaged 6.35% during the same period in 2024.<\/p>\n

\u201cMortgage rates continue to trend down, increasing optimism for new buyers and current owners alike,\u201d says\u00a0Sam Khater, Freddie Mac\u2019s chief economist. \u201cAs rates continue to drop, the number of homeowners who have the opportunity to refinance is expanding. In fact, the share of market mortgage applications that were for a refinance reached nearly 47%, the highest since October.\u201d<\/p>\n

The relatively steady rates reflect the market\u2019s wait-and-see stance ahead of the\u00a0Department of Labor\u2019s<\/a>\u00a0<\/a>upcoming jobs report for the month of August.<\/p>\n

Realtor.com\u00ae<\/a>\u00a0senior economic research analyst\u00a0Hannah Jones\u00a0explains that historically, weaker-than-expected employment figures fuel optimism for\u00a0Federal Reserve\u00a0rate cuts<\/a> and can lower bond yields, nudging mortgage rates lower.\u00a0<\/p>\n

The average rate on 30-year fixed home loans was 6.5% for the week ending Sept. 4, down from 6.56% the previous week. SewcreamStudio \u2013 stock.adobe.com<\/p>\n

On the other hand, a robust jobs report may reinforce inflation concerns and boost Treasury yields, pushing mortgage rates upward.\u00a0\u00a0<\/p>\n

\u201cThis setup underscores the potential for increased mortgage rate volatility ahead,\u201d says Jones.\u00a0<\/p>\n

And that could spell bad news for the housing market that is coming off a\u00a0\u201ccruel summer\u201d\u00a0marked by a standoff between buyers and sellers.\u00a0<\/p>\n

Rates averaged 6.35% during this same period in 2024. Petrik \u2013 stock.adobe.com<\/p>\n

According to Jones, the market has been constrained by persistent affordability challenges, leaving buyers feeling sidelined due to still-high prices and mortgage rates, and sellers torn between wanting to offload their properties but being reluctant to offer discounts.\u00a0<\/p>\n

As a result, some frustrated sellers decided this summer to delist their homes and wait for better conditions, rather then compromise on their profit margins.\u00a0\u00a0<\/p>\n

\u201cAs a result, the market remains in stasis, inventory improvements notwithstanding, persistent cost burdens and economic uncertainty continue to suppress demand throughout the home-buying season,\u201d says Jones.\u00a0<\/p>\n

The market has been constrained by persistent affordability challenges, leaving buyers feeling sidelined, according to economic research analyst\u00a0Hannah Jones. Andrey Popov \u2013 stock.adobe.com<\/p>\n

Adding to ongoing affordability headwinds,\u00a0recent research\u00a0highlights growing insurance-related financial burdens and climate-related exposure across U.S. housing markets, with more than a quarter of all homes (26.1%) with a combined value of nearly $13 trillion facing severe or extreme risk from flood, wind, or wildfire.\u00a0<\/p>\n

\u201cHomeowners in high-risk areas often face substantially elevated premiums or uninsured gaps, which, when combined with high borrowing costs, could dampen demand or reshape buyer behavior,\u201d adds Jones.\u00a0<\/p>\n

How mortgage rates are calculated<\/p>\n

Mortgage rates are determined by a delicate calculus that factors in the state of the economy and an individual\u2019s financial health. <\/p>\n

They are most closely linked to the 10-year Treasury bond yield, which reflects broader market trends, like economic growth and inflation expectations. <\/p>\n

Lenders reference this benchmark before adding their own margin to cover operational costs, risks, and profit.<\/p>\n

When the economy flashes warning signs of rising inflation, Treasury yields typically increase, prompting mortgage rates to go up. <\/p>\n

Some frustrated sellers decided this summer to delist their homes and wait for better conditions, rather then compromise on their profit margins.\u00a0\u00a0 Smole \u2013 stock.adobe.com<\/p>\n

Conversely, signs of falling inflation or weakness in the labor market usually send Treasury yields lower, causing mortgage rates fall.<\/p>\n

The mortgage rates you\u2019re offered by a lender, however, go beyond these benchmarks and take some of your personal factors into account.<\/p>\n

Your lender will closely scrutinize your financial health\u2014including your credit score, loan amount, property type, size of down payment, and loan term\u2014to determine your risk. <\/p>\n

Those with stronger financial profiles are deemed as lower risk and typically receive lower rates, while borrowers perceived as higher risk get higher rates.<\/p>\n","protected":false},"excerpt":{"rendered":"Mortgage rates\u00a0saw yet another modest decrease Thursday, retreating to an 11-month low following the long Labor Day weekend…\n","protected":false},"author":2,"featured_media":137423,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[36],"tags":[28,101,6292,85940,85941,85942],"class_list":["post-137422","post","type-post","status-publish","format-standard","has-post-thumbnail","category-economy","tag-business","tag-economy","tag-job","tag-mortgage-meltdown","tag-realtor","tag-subprime-mortgages"],"_links":{"self":[{"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/posts\/137422","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/comments?post=137422"}],"version-history":[{"count":0,"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/posts\/137422\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/media\/137423"}],"wp:attachment":[{"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/media?parent=137422"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/categories?post=137422"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/tags?post=137422"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}