Mortgage rates rise for fourth consecutive week

The cost of mortgage rates rose for the fourth week in a row. Freddie Mac reported that the average rate on a 30-year fixed mortgage rose to 6.54%, reaching its highest level since early August. This increase represents a rise of 10 basis points compared to the previous week.

Freddie Mac also reported an increase in the average 15-year fixed mortgage rate, which rose to 5.71% (up from 5.63% the previous week). This elevated rate continues to put pressure on housing costs for consumers.

Existing home sales fall to lowest level in 14 years

The upward trend in rates persists despite the Federal Reserve cutting its benchmark interest rate last month. However, long-term Treasury bond yields, which are closely linked to mortgage rates, have increased.

The 10-year bond yield stood at 4.198%, up significantly from 3.62% before the Fed's decision last month.

This outlook directly affects the real estate market. The National Association of Realtors reported that existing home sales fell to the lowest level in 14 years, highlighting the financial challenges buyers face amid high borrowing costs and limited access to affordable properties.