U.S. Mortgage Rates Decline

WASHINGTON (Reuters) – U.S. mortgage rates have dropped to the lowest level in nearly two months this week, a trend that, if sustained, could boost home sales in the coming months.

The average rate on the popular 30-year fixed-rate mortgage fell to 6.60%, the lowest level since the week ending October 24, down from 6.69% last week, according to mortgage finance agency Freddie Mac. This marks three consecutive weeks of decline. For context, the rate averaged 6.95% during the same period a year ago.

Sam Khater, Freddie Mac's chief economist, noted, "The combination of mortgage rate declines, firm consumer income growth, and a bullish stock market have increased homebuyer demand in recent weeks. While the outlook for the housing market is improving, the improvement is limited given that homebuyers continue to face stiff affordability headwinds."