Published • loading... • Updated
Average Long-Term US Mortgage Rate Eases to 7.32% in First Pullback Since Late August
Lower rates failed to lift demand as purchase applications fell 7% and refinance activity dropped 2%, the Mortgage Bankers Association 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.
Insights by Ground AI
25 Articles
25 Articles
Coverage Details
Total News Sources25
Leaning Left10Leaning Right2Center10Last UpdatedBias Distribution46% Left, 45% Center
Bias Distribution
- 46% of the sources lean Left, 45% of the sources are Center
46% Left
L 46%
C 45%
Factuality
To view factuality data please Upgrade to Premium
