After a disappointing spring and summer, the housing market could start to heat up as fall approaches with the latest plunge in mortgage rates.
Bond yields tumbled on Friday as the weaker-than-expected jobs report raised expectations for rate cuts from the Federal Reserve. The 10-year Treasury yield dived 10 basis points to 4.076%, the lowest since April.
Meanwhile, the average rate on the 30-year fixed mortgage sank 16 basis points to 6.29%, according to Mortgage Daily News. That marked the biggest single-day decline since August 2024 and the lowest level since Oct. 3 2024.
“Many lenders are priced better than 10/3/24 at rates of 6.125%, and many lenders will be quoting in the high 5’s today,” Mortgage News Daily Chief Operating Officer Matt Graham said in a post on X on Friday.
While mortgage rates similarly plunged a year ago, the situation today is different. Back then, like now, the unemployment rate was ticking higher, triggering the Sahm rule and raising fears of a recession. Expectations for Fed rate cuts jumped, sending mortgage rates down.
