US mortgage rates ease to 6.27% as 15-year drops to 5.52%

The average U.S. 30 year mortgage rate fell again this week, easing to 6.27 percent from 6.30 percent a week earlier, Freddie Mac said Thursday. The decline marks the second consecutive weekly drop and brings long term borrowing costs back near their lowest level so far this year. The 15 year fixed rate, often chosen by homeowners refinancing, also ticked down to 5.52 percent.

Economists and market observers said the move reflects a mix of monetary policy expectations and shifts in bond markets. Mortgage rates generally track the 10 year Treasury yield, which was about 4.02 percent at midday Thursday, down from roughly 4.14 percent a week earlier. Investors’ expectations for future economic growth and inflation feed through to Treasury yields and then to mortgage pricing.

Freddie Mac’s chief economist, Sam Khater, said homeowners have noticed the lower rates and that refinancing activity has picked up. "Combined with increased housing inventory and slower house price growth, these rates also are creating a more favorable environment for those looking to buy a home," he said.

The recent easing in mortgage costs began in July as markets anticipated the Federal Reserve’s decision...