U.S. Mortgage Rates Rise for Fourth Consecutive Week

WASHINGTON (Reuters) – U.S. mortgage rates have increased for a fourth straight week, indicating that the housing market may face challenges for the foreseeable future, even as the Federal Reserve lowers interest rates.

According to Freddie Mac, the average rate for the popular 30-year fixed-rate mortgage has risen to 6.54%, up from 6.44% the previous week. This rate contrasts sharply with 7.79% during the same period last year.

Mortgage rates fell initially in September, reaching a 1-1/2-year low by month's end as the Fed began its rate cuts. However, robust economic data, including strong retail sales and annual revisions to national accounts, have led traders to rethink the prospects of another 50-basis-point rate cut by the U.S. central bank next month.

"The continued strength in the economy drove mortgage rates higher once again this week," stated Sam Khater, Freddie Mac's chief economist. He noted, "Over the last few years, there has been a tension between the downbeat economic narrative and incoming economic data stronger than that narrative."