The average interest rate on a 30-year fixed mortgage in the US edged slightly lower this week but continued to hover within a narrow range that has prevailed for nearly two months, offering only modest relief to homebuyers.The benchmark long-term mortgage rate slipped to 6.18% from 6.21% last week, mortgage buyer Freddie Mac said on Wednesday. A year ago, the average rate stood at 6.85%, according to data cited by the AP.Borrowing costs moved the other way for 15-year fixed-rate mortgages, which are commonly used by homeowners refinancing their loans. The average rate rose to 5.50% from 5.47% a week earlier, compared with 6% a year ago, Freddie Mac said.Mortgage rates are influenced by a range of factors, including the Federal Reserve’s interest-rate decisions and investor expectations around inflation and economic growth. They typically track the 10-year US Treasury yield, which lenders use as a benchmark when pricing home loans.The 10-year Treasury yield stood at 4.15% by midday Wednesday, slightly higher than last week’s 4.12%.Freddie Mac data show that the 30-year mortgage rate has remained largely stable since October 30, when it dipped to 6.17%, its lowest level in more than a year. Rates began easing in July amid expectations of Federal Reserve rate cuts, which started in September and continued this month.While the Fed does not directly set mortgage rates, cuts to short-term rates can signal easing inflation or slower growth, prompting investors to buy US government bonds. That can push down long-term Treasury yields and, in turn, mortgage rates. However, rate cuts do not always lead to lower mortgage borrowing costs.Housing market conditions have improved slightly compared with a year ago. Home listings have risen sharply, and many sellers have lowered asking prices as properties take longer to sell, according to Realtor.com data. Buyers who can pay cash or manage current mortgage rates are in a stronger position than last year.Even so, affordability remains a major hurdle, particularly for first-time buyers without home equity. Economic uncertainty and concerns about the job market are also keeping many prospective buyers on the sidelines.Sales of previously owned US homes rose in November from the previous month, but slowed compared with a year earlier for the first time since May, despite mortgage rates hovering near their lowest levels of the year. Over the first 11 months of the year, home sales were down 0.5% from the same period last year.
