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11.09.202516:06:30UTC+00US 30-Year Mortgage Rate Drops the Most in a Year

The average interest rate on a 30-year fixed mortgage backed by Freddie Mac decreased by 15 basis points from the previous week, reaching 6.35% as of September 11th, marking the lowest point since early October. This drop coincided with a decrease in long-term Treasury yields as growing indications of a cooling U.S. labor market led to expectations of multiple rate cuts by the Federal Reserve this year. "The 30-year fixed-rate mortgage saw a 15 basis point drop from last week, representing the most significant weekly decrease in the last year. Mortgage rates are trending favorably, and homebuyers are taking notice, with purchase applications experiencing their highest year-over-year growth rate in over four years,” stated Sam Khater, chief economist at Freddie Mac.

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