Mortgage rates decline for first time in 2 months
Lower rates offered little relief as purchase and refinance demand kept falling and builder sentiment sank to a 14-year low, analysts said.
- Total mortgage application volume fell 5.3% last week, according to the Mortgage Bankers Association, even as Freddie Mac reported the benchmark 30-year fixed-rate mortgage dropped to 7.32% from 7.40%.
- Buyers remain sidelined by stubborn home prices and elevated interest rates, which hover uncomfortably near seven percent, leading many house hunters to adopt a wait-and-see posture.
- Joel Kan, an MBA economist, stated that "lower rates were not enough to boost application activity," with purchase applications falling 7% and refinance demand 59% lower than one year ago.
- Because millions of homeowners are locked into lower rates, resale inventory remains tight, forcing 10.5 percent of shoppers to pursue adjustable-rate mortgages for lower borrowing costs.
- Economists suggest rates must decline sustainably toward six percent to unleash pent-up demand, noting the housing market standoff will likely continue until borrowing costs drop or sellers offer concessions.
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Average long-term US mortgage rate eases to 7.32% in first pullback since late August - WXXV News 25
By ALEX VEIGA Mortgage rates fell this week for the first time since late August, easing some of the pressure on prospective homebuyers facing higher borrowing costs on home loans. The benchmark 30-year fixed-rate mortgage dropped to 7.32% from 7.40% last week, mortgage buyer Freddie Mac said Thursday. One year ago, the average rate was 6.19%. Borrowing costs on 15-year...
Mortgage rates decline for first time in 2 months
Welcome to The Hill’s Business & Economy newsletter {beacon} Business & Economy Business & Economy The Big Story Mortgage rates decline for first time in 2 months The average 30-year fixed mortgage rate dipped this week to 7.32 percent, according to new data from Freddie Mac. © George Walker IV, The Associated Press That…
Mortgage rates are finally giving American borrowers a little respite after eight consecutive weeks of increases.
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