US Mortgage Rates Drop, Easing Pressure on Potential Buyers (1)

Mortgage rates in the US declined, offering a bright spot for would-be homebuyers.

The average for a 30-year fixed loan was 6.81%, down from 6.84% last week, Freddie Mac said in a statement.

Borrowing costs are much higher than two months ago, when the average on a 30-year mortgage dropped to a low of 6.08%. Higher rates have ramped up affordability pressures, with buyers now paying about $3,916 for monthly mortgage payments on a $600,000 home, up $288 from two months earlier.

Some shoppers are forging ahead. In October, contracts to buy previously owned homes rose to a seven-month high, ...