Mortgage rates plunge to the lowest level in over a year after weak employment report

The average rate on the 30-year fixed mortgage dropped 22 basis points to 6.4% on Friday. It is the lowest rate since April 2023. The 15-year fixed rate also fell to 5.89%, its lowest level since early May 2023. This drop follows a weaker-than-expected monthly employment report, which caused bond yields to fall. Mortgage rates generally track the yield on the 10-year U.S. Treasury. The recent high for the 30-year fixed rate was 7.52% in late April, leading to a decline in home sales. The drop in rates may boost homebuying activity.