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U.S. mortgage rates fall to lowest level in more than three years

Lower mortgage rates can improve affordability and influence housing demand, making interest-rate trends critical for consumers and financial markets. (BizTrendWire Insight)

U.S. mortgage rates declined further last week.
The average rate on a 30-year fixed mortgage fell to 6.06%.

That marked the lowest level since September 2022.
The data was released on January 15 by Freddie Mac.

Meanwhile, the rate was down from 6.16% the previous week.
It also fell from 7.04% during the same period last year.

Lower rates followed recent moves in financial markets.
Bond yields eased as investors priced in slower inflation.

As a result, borrowing costs for homebuyers declined.
However, rates remain well above pre-2022 levels.

The 15-year fixed mortgage rate also declined.
It fell to 5.38% from 5.46% a week earlier.

Meanwhile, housing demand remains uneven.
High home prices continue to limit affordability.

Despite this, falling mortgage rates may help stabilize demand.
Lenders and buyers continue to watch interest-rate trends closely.

Source: Reuters

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