Mortgage Rates Are Falling, Home-Price Growth Is Cooling and Supply Is Outpacing Demand

Redfin economists say serious homebuyers have a window of opportunity to lock in a mortgage rate, as rates could fluctuate as more economic data is released in the coming weeks. 

House hunters got some relief this week as the daily average mortgage rate dropped to its lowest level in nearly a year after a softer-than-expected jobs report. A homebuyer on a $3,000 monthly budget can afford a $458,750 home with a 6.55% mortgage rate, roughly the daily average on Wednesday; that buyer has gained roughly $20,000 in purchasing power since mortgage rates hit a recent peak of 7.08% in May. 

There are a few other bright spots for house hunters this week:

• • Home-price growth is losing steam. The median U.S. asking price rose just 2.3% year over year during the four weeks ending August…