"Long-Term Mortgage Rates Hit 7-Month Low"

The average long-term U.S. mortgage rate has dropped to its lowest level since May, with the 30-year mortgage rate falling to 6.6% from 6.66% last week. This decline is seen as encouraging for the housing market and first-time homebuyers, although it may exacerbate the already depleted housing inventory. The decrease in rates is attributed to a pullback in the 10-year Treasury yield, and if rates continue to ease, it is expected to boost demand heading into the spring homebuying season. However, economists generally predict the average rate on a 30-year mortgage to not go lower than 6%.