The average interest rate on the most popular U.S. home loan has dropped to its lowest level in over a year, following softer inflation data that reinforced expectations of another Federal Reserve rate cut.
According to the Mortgage Bankers Association (MBA), the rate on a 30-year fixed mortgage fell by seven basis points to 6.30% for the week ending October 24, the lowest since September 2024.
Mortgage rates have now declined by more than three-quarters of a percentage point since mid-January.
The drop in borrowing costs spurred a 7.1% jump in total mortgage applications, with refinancing activity up 9.3% and home purchase applications rising 4.5%.
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The latest report comes just hours before the Federal Reserve is expected to announce its second consecutive interest rate cut.
Policymakers are anticipated to lower the benchmark rate by 25 basis points, bringing it to a range of 3.75% to 4.00%, with another reduction possible in December.
The move follows last week’s Consumer Price Index (CPI) report showing inflation rose less than expected in September.
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The data has shifted policymakers’ focus toward the cooling labor market, viewed as a bigger threat to economic growth than inflation.
Meanwhile, the yield on the 10-year U.S. Treasury note, a key benchmark for mortgage rates, has fallen for four straight weeks hovering near its lowest level since April.
Esther Ososanya is an investigative journalist with Pinnacle Daily, reporting across health, business, environment, metro, Fct and crime. Known for her bold, empathetic storytelling, she uncovers hidden truths, challenges broken systems, and gives voice to overlooked Nigerians. Her work drives national conversations and demands accountability one powerful story at a time.
