30-year mortgage rates hit lowest level in 19 months

article

A "For Sale" sign is displayed in front of a home in Morton Grove, Ill., Sunday, August. 25, 2024. (AP Photo/Nam Y. Huh)

WASHINGTON (AP) - The average rate on a 30-year mortgage in the U.S. fell this week to its lowest level in 19 months, reflecting a pullback in Treasury yields ahead of an expected interest rate cut from the Federal Reserve next week.

The rate fell to 6.20% from 6.35% last week, mortgage buyer Freddie Mac said Thursday. A year ago, the rate averaged 7.18%.

That’s good news for prospective homebuyers facing home prices near all-time highs.

Mortgage rates are expected to keep trending lower overall this year while rent prices in Seattle inched upward in August.

That’s due to signs of waning inflation and a cooling job market, which have raised expectations that the Fed will cut its benchmark interest rate next week for the first time in four years.