U.S. 30-year loan interest rates fell to 7.18%, falling for three consecutive weeks

U.S. housing finance institution Freddie Mac released data on the 5th local time showing that the average interest rate on 30-year fixed mortgages in the United States fell to 7.18%. This data has fallen for three consecutive weeks.

Data show that the average interest rate on 30-year fixed mortgages in the United States fell to 7.18% that day. The figure was 7.24% a week ago and 6.22% a year ago.

Since the beginning of this year, the average 30-year fixed mortgage interest rate in the United States dropped to a three-year low of 5.98% on February 26. Afterwards, affected by the war in Iran, it showed an overall upward trend for several consecutive months. On October 8, it rose to 7.4%, which is the highest value since November 16, 2023.

U.S. mortgage interest rates are affected by factors such as the Federal Reserve's federal funds rate and the U.S. 10-year Treasury bond yield. The U.S. 10-year Treasury bond yield fell to 4.84% on the 5th, the lowest since early September, but still higher than the 3.97% value before the Iran war.

U.S. media analysis believes that the recent decline in the U.S. 10-year Treasury bond yield is the main reason for the decline in mortgage interest rates. The decline in mortgage interest rates is good news for potential home buyers and can alleviate the pressure of buying a home to a certain extent. Economists believe that although mortgage interest rates have fallen recently, they are still high and the housing market downturn is expected to continue.

Data released by the Mortgage Bankers Association on the 4th showed that the number of mortgage loan applications (including home purchase loans or refinancing of existing mortgages) in the week ended October 30 decreased by 1.2% from the previous week.