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Mortgage Interest Rates Fall - Lowest In 18 Months [Update]

Sara S
mortgage interest rates news update. interest rates fall

If you remember, mortgage interest rates hit a high point in February 2023 and they haven’t cooled off since then. The market has been stagnant for more than 18 months and everyone has been waiting on the sidelines for rates to drop.


We're finally starting to see a shift all over the news and in the market.


Where Are Rates Now?


In the last 6 weeks, mortgage rates have finally started to drop, albeit slowly.

 

The average interest rate for a 30-year fixed mortgage for conforming loans dropped from 6.43% to 6.29%. (Mortgage Bankers Association).

 

Joel Kan, Deputy Chief Economist at the Mortgage Bankers Association (“MBA”), attributes the rate drops to “cooling inflation, a slowing job market, and the anticipated first rate cut from the Federal Reserve later this month.”

 

With rates slowly coming down, the demand for new mortgages have been going up. According to MBA, mortgage applications for refinances have gone up 1% each week. And mortgage applications for purchasing a home went up 2% last week.

 

Still, the low inventory of houses for sale and affordability of housing prices are a barrier to making purchasing decisions.

 

We’re seeing mortgage refinance applications submitted by homeowners and investors who purchased a home within the last 2 years when rates were at its higher point.


Once The Federal Reserve cuts its rate, we will likely see mortgage rates drop even more.


Stay tuned.



 


 

 





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