Mortgage Rates Experience Mixed Movements Amid Economic Shifts

Despite recent Federal Reserve rate cuts, mortgage rates have risen to a two-month high, impacting refinancing and purchase applications.

The average 30-year fixed mortgage rate increased to 6.52%, marking the highest level since August.
Refinancing activity declined sharply, with applications dropping 17% last week, as higher rates deterred borrowers.
The Federal Reserve's September rate cut did not lead to lower mortgage rates as expected, with 10-year Treasury yields rising instead.
First-time homebuyers remain active, particularly in the FHA loan segment, due to improved housing inventory.
Mortgage rates remain higher than the lows of 2021 but have decreased significantly from the 23-year peak of 7.9% last October.