US Mortgage Rates Continue to Ease on Expectations of Fed Move

  • Purchase applications rose 3.3% as borrowing costs edged lower
  • 30-year mortgage rates fell for fifth week, MBA survey shows

Mortgage rates have fallen recently on expectations that the Federal Reserve will begin cutting interest rates.

Photographer: Nathan Howard/Bloomberg
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US mortgage rates fell last week to their lowest level since April 2023, prompting potential homebuyers to apply for loans at a faster clip.

The contract rate on a 30-year fixed mortgage fell slightly to 6.43% in the week ended Aug. 30, according to data released Wednesday by the Mortgage Bankers Association. That marked the fifth decline in as many weeks and spurred a pickup in the MBA’s index of home-purchase applications, which rose 3.3% to 136.1.