Mortgage rates

Short-term rate cuts often don't immediately translate to lower financing costs for 30-year home loans, and there are some unique circumstances this time.

The 30-year fixed rate mortgage fell week-to-week by the largest amount since the start of August and are now almost a percentage point lower than a year ago, according to Freddie Mac.

Recent rate movements have failed to result in significant purchase growth, but refinances are providing lenders some lift.

About 85% of U.S. homeowners have interest rates below 6%, while a little over 50% of homeowners have a rate below 4%, Redfin's report said.

The 30-year fixed rate mortgage is lingering just shy of 6.5% level, which is not low enough to bring home purchasers back into the market, observers said.

Nearly two-thirds of consumers in a July survey said they expect mortgage rates to decline soon, but most want to see them cross a very specific threshold before they act, Mphasis Digital Risk found.

Market turmoil is driving the 10-year Treasury yield downward and taking mortgage rates with it, putting more borrowers in the money to refinance, Intercontinental Exchange said.

But following the gross domestic product and personal consumption expenditures reports, Treasury yields and mortgage rates fell.

The resilience of the equity market has been underpinned by optimism the economy has withstood the worst of Fed tightening.

But economists seem to differ on what the latest movement in mortgage rates means for the summer home sales business.