U.S. mortgage rates are at their lowest level since October last year

U.S. mortgage rates have held steady after falling for four straight weeks. Freddie Mac said in a statement that the average rate on a 30-year fixed loan was 6.58 percent, unchanged from last week, which fell to its lowest level since last October. Rates have fallen low enough over the past few months that it may tempt some hesitant homebuyers to give up the wait-and-see. In parts of the backlog, sellers are willing to negotiate, offering help with closing fees and other concessions. But affordability remains a serious hurdle, especially for first-time buyers. Separate data showed pre-owned home sales climbed in July as price increases slowed. But that doesn't mean the market has become affordable: agencies say home prices have surged by more than 50 per cent since the start of 2020. "Higher interest rates have eroded the real purchasing power of the typical American household," says Danielle Hale, chief economist at Realtor.com. "This dynamic has forced many buyers to adjust their expectations, either by looking for a smaller home and moving further afield, or simply putting off the dream of buying a home."