Mortgage rates have plummeted to yearly lows, with top-tier borrowers receiving rates around 6.11%. This marks a significant drop from highs near 7.50% earlier this year.
The improving mortgage spreads indicate a trend leading towards the first Fed rate cut in 2024, suggesting that the bond market is anticipating Fed easing ahead of actual cuts.
Despite a year-over-year decline in purchase applications of only 3%, this is still the lowest since 2022, reflecting a more favorable lending environment.
The reaction of the market to lower mortgage rates has been notably positive, showcasing nine weeks of improvements in weekly purchase applications amidst the overall decline.
Collection
[
|
...
]