In recent months, economic uncertainty has led to falling yields in the bond market, with the 10-year Treasury declining by 60 basis points. This trend has influenced mortgage rates, with the 30-year fixed mortgage dropping to 6.75%. Despite these lower rates, pending home sales are down 3% compared to last year. Analysts believe that significant buyer demand won't improve until mortgage rates approach 6%. The current economic climate is characterized by slower GDP growth, which, while resulting in cheaper rates, is also correlated with reduced job growth and income stagnation.
"The 30-year fixed mortgage has recently fallen as low as 6.75%, the lowest level since mid-December, responding to the declining 10-year Treasury yield."
"Our weekly pending home sales data continues to run about 3% below last year. This is after Q4 2024 was 5% above the year prior, a notable swing."
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