The U.S. 30-year mortgage rate plummets to 6.29%, hitting a nearly one-year low

According to Mortgage News Daily data, the U.S. 30-year fixed mortgage rate plummeted by 16 basis points to 6.29% on Friday, marking the lowest level since October 3 of last year and the largest single-day drop since August of last year. Driven by the decline in rates, U.S. homebuilder stock prices generally performed well, with Lennar (LEN.US), D.R. Horton (DHI.US), and Pulte (PHM.US) all rising about 3% during Friday's trading session.

The sharp drop in mortgage rates was primarily influenced by weaker-than-expected U.S. employment data for August, which led to a decline in U.S. Treasury yields, causing mortgage rates to fall in tandem. Matt Graham, the Chief Operating Officer of Mortgage News Daily, stated that employment reports are typically the biggest potential factor affecting rate fluctuations and revealed that many lending institutions' actual quotes are now below early October levels, with some even reaching a high of 5%