WASHINGTON—Mortgage rates in the U.S. fell again last week, but application volume was tepid, with analysts saying an uncertain economic outlook and weak hiring are keeping prospective homebuyers on the sidelines.
The average rate on the 30-year fixed-rate mortgage dropped to 6.30% from 6.34% last week, Freddie Mac said. It averaged 6.32% during the same period a year ago.
Real estate company Redfin confirmed buyers remain hesitant, noting that pending home sales decreased 1.3% from a year ago in September, the biggest drop in five months.
“But buyers aren’t budging,” Redfin said in a statement. “The typical home that sells is taking 48 days to go under contract, a week longer than last year and the longest September span since 2019.”
Not Wading In
Redfin said in its statement that its agents in much of the country reported that prospective homeowners were waiting for mortgage rates to drop even further before wading back into the market.
“Some prospective buyers are also wary of making a big purchase while the economy is uncertain, with the government shutdown and recent weak jobs reports making some Americans insecure about their finances,” the company said.
