Sam Khater, Freddie Mac's chief economist, noted, 'In 2023, the 30-year fixed-rate mortgage nearly hit 8 percent, slamming the brakes on the housing market. Now, it hovers around 6.5 percent and will likely trend down in the coming months as inflation continues to slow. Lower rates are good news for potential buyers and sellers alike.' This indicates a shift in conditions that could reinvigorate the housing market.
The Mortgage Bankers Association reports a notable increase, with applications for home loans climbing nearly 17 percent last week. This surge suggests growing interest from potential buyers amid adjustments in mortgage rates.
According to Freddie Mac, the average rate on a 30-year mortgage rose slightly to 6.49 percent, still significantly lower than last year’s average of 7.09 percent, demonstrating volatility in borrowing costs which affects buyer decisions.
Elevated mortgage rates have posed challenges, adding hundreds of dollars a month in costs for borrowers and contributing to a housing slump that has stretched into its third year, highlighting market pressures.
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