US 30-year fixed-rate mortgage rate falls to lowest since May 2023, Freddie Mac says

By Makailah Gause

NEW YORK, Aug 29 (Reuters) - The average rate on the popular U.S. 30-year mortgage rate fell to 6.35% for the week ending Aug. 29, the lowest since May 2023, due to expectations of a Federal Reserve interest rate cut next month.

That was down from 6.46% in the prior week, mortgage finance agency Freddie Mac said on Thursday in its weekly update of home loan rates.

"Rates are expected to continue their decline and while potential homebuyers are watching closely, a rebound in purchase activity remains elusive until we see further declines," Sam Khater, Freddie Mac's chief economist, said in a statement.

It averaged 7.18% during the same period a year ago.

While rates have been steadily decreasing this summer, their fall has yet to lead to a home sales recovery.

Earlier on Thursday, the National Association of Realtors reported that pending home sales fell 5.5% in July to the lowest reading since the index began tracking contract signings in 2001. (Reporting by Makailah Gause; editing by Dan Burns and Paul Simao)