Mortgage rates fell to 6.95% for the week ending Jan. 30, continuing a two-and-a-half-year trend of hovering between 6% and 7%. This decline is attributed to stock market turmoil driven by fears over the Chinese AI company DeepSeek, leading to increased investor interest in bonds, thus pushing Treasury yields lower. However, persistent supply shortages and high rates mean many potential homebuyers are still sidelined. The Fed's recent decision to pause rate cuts was anticipated and did not affect mortgage rates significantly.
The average rate on 30-year fixed home loans dipped to 6.95% this week, reflecting a trend remaining essentially flat in the past two and a half years.
Driven by higher rates and a persistent supply shortage, many homebuyers still face affordability hurdles and remain on the sidelines.
Amid tech stock turmoil, investors shifted to bonds, driving down yields and consequently leading to a slight decrease in mortgage rates.
The Fed’s recent decision to pause rate cuts did not influence mortgage rates, indicating their limited impact in the latest market dynamics.
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