The average rate on the 30-year fixed mortgage dropped 16 basis points to 6.29% on Friday, marking the biggest one-day drop since August 2024. This decline followed the release of a weaker-than-expected August employment report.
This reduction brings mortgage rates to their lowest level since October 3, breaking out of the high 6% range where they had been stuck for months. The drop is significant for homebuyers, potentially making homeownership more accessible.
Homebuilder stocks, including PulteGroup, reacted favorably to the news, with PulteGroup shares rising approximately 3% midday. This indicates that lower mortgage rates are a key driver for increased demand in the housing market.
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