The 30-year fixed mortgage rate in the United States has dropped to 6.29%, marking the largest single-day decline in 11 months.

The 30-year fixed mortgage rate in the United States fell sharply by 16 basis points to 6.29% on Friday, reaching its lowest level since October 3, 2024, and recording the largest single-day decline since August of last year. According to data from Mortgage News Daily, this drop was mainly due to a weaker-than-expected August employment report. Previously, mortgage rates had been hovering in the high 6% range for several months, and this breakthrough brought significant relief to homebuyers. Matt Graham, Chief Operating Officer of Mortgage News Daily, said, "This is a direct response from the market to the highly anticipated employment data. The bond market has always seen the employment report as the biggest potential trigger for interest rate fluctuations." He pointed out on X platform that the actual rates offered by many lenders are already lower than the levels on October 3, with some even entering the high 5% range. Compared to the high point of 7.08% in May, the current rates have dropped by nearly 80 basis points. Stimulated by the favorable decline in rates, home builders' stocks were actively traded on Friday, with Lennar Corp (LEN.US) up 2.76%, D.R. Horton, Inc. (DHI.US) up 2.89%, and Pulte Group (PHM.US) up 2.15% by the closing bell. The iShares U.S. Home Construction ETF (ITB.US) tracking the housing construction industry has risen nearly 13% in the past month, reflecting the market's optimistic expectations for the decline in mortgage rates. However, there has not been a noticeable rebound in homebuyer demand yet. According to data from the Mortgage Bankers Association (MBA), mortgage applications for home purchases decreased by 6.6% last week compared to four weeks ago, indicating that the market is still in a wait-and-see mode. Danielle Hale, Chief Economist at Realtor.com, commented after the employment data was released, "Buyers are struggling with affordability, sellers face more competition, and homebuilders are under pressure from softening demand. These conditions have not led to catastrophic results yet, but they have indeed brought tough challenges to the real estate market this summer." Some analysts believe that only when mortgage rates fall into the 5% range can the suppressed demand for home purchases truly be stimulated. Despite a slowdown in the momentum of rising home prices, overall prices in the U.S. remain high. In addition, the uncertainty surrounding the economy and job prospects is also keeping potential buyers cautious.