U.S. mortgage rates drop for sixth straight week, falling to 6.27%

Mortgage rates in the U.S. fell for a sixth straight week this past week, hitting a roughly three-month low.

The average for a 30-year, fixed loan was 6.27%, down from 6.31% the previous week, Freddie Mac said in a statement Thursday.

Borrowing costs are down more than 80 basis points since early November. While that has spurred more applications for home loans in the past few weeks, it hasn’t been enough to get the market moving again. Instead of jumping in, both buyers and sellers are holding back, concerned about the economy and wary of where rates and prices may head in the coming year.

Purchases of existing U.S. homes decreased for a 10th straight month in November, sliding to the second-weakest annual pace since 2010, the National Association of Realtors reported on Wednesday.

“Rates have declined significantly over the past six weeks, which is helpful for potential homebuyers,” Sam Khater, Freddie Mac’s chief economist, said in the statement. “But new data indicates homeowners are hesitant to list their homes.”

The Federal Reserve’s campaign to cool inflation has “some ways to go,” Chair Jerome Powell said recently after the central bank increased its benchmark interest rate. That suggests mortgage costs may still climb further, remaining an affordability hurdle for would-be buyers.