For the second consecutive week, mortgage rates in the United States fell again, according to the latest report from Freddie Mac, which indicated that the 30-year fixed reference rate stood at 6.27% from the 6.30% recorded the previous week.

Meanwhile, 15-year fixed-mortgage rates also showed a decline, reaching 5.52% from 5.53% the previous week. “Importantly, homeowners have noticed these consistently lower rates, which has fueled an uptick in refinance activity,” said Sam Khater, chief economist at Freddie Mac.

According to him, the combination of falling home prices and rising inventory is currently creating a favorable environment for prospective buyers, who have been staying away from the market.

However, economists like Jiayi Xu of Realtor.com believe that the market currently remains tight and this is due to several factors: the labor market and its decline in hiring, and the government shutdown. Both have created uncertainty among homeowners and buyers.

“The broader uncertainty stemming from the ongoing government shutdown may further dent confidence, especially in markets with a larger share of federal workers and contractors, who are facing financial strain and concerns about potential layoffs,” Xu noted.

The economist further added that “purchasing power has declined sharply as home prices and mortgage rates continue to outpace income growth. As a result, substantial wage growth and greater financial stability will be essential to boost buying desire,” he said.