Contract rates went on descending for a third week, as the Central bank’s favored expansion check showed costs cooled in October while still close to a four-decade high at 6% every year. Although it is still likely that the Federal Reserve will raise rates once more in December, it has become less hawkish regarding the severity of the hikes.

According to Freddie Mac, the 30-year fixed-rate mortgage averaged 6.49 percent, down from 6.58 percent the previous week. The 30-year FRM averaged 3.11 percent a year ago.

The 15-year fixed-rate mortgage averaged 5.76 percent, down from 5.90 percent the previous week. The 15-year FRM averaged 2.39 percent a year ago.

“Even as rates decrease and house prices soften, economic uncertainty continues to limit homebuyer demand as we enter the last month of the year,” said Sam Khater, chief economist at Freddie Mac.

Despite a sharp rise in the yield on the 10-year Treasury note, mortgage rates remain more than double what they were at the beginning of January. The yield is influenced by a variety of factors, including the expectation of investors for future inflation and global demand for U.S. Treasurys, both of which raise the likelihood of overall interest rate increases.

Compared to last year, when the average rate on a 30-year mortgage barely rose above 3% much of the time, this year’s sharp rise in mortgage rates and still-rising home prices have added hundreds of dollars to monthly home loan payments.

This has contributed to the downturn in the housing market this year by creating a significant affordability obstacle for many potential homebuyers. The pace of annual sales of homes that had previously been occupied in the United States decreased for the ninth consecutive month last month, reaching the lowest level since before the pandemic.