MORTGAGE rates in the US fell for the first time in eight weeks, while sticking close to a two-decade high.

The average for a 30-year, fixed loan was 7.76 per cent, down from 7.79 per cent last week, Freddie Mac said on Thursday (Nov 2).

Even with the slight break, borrowing costs are up steeply since early September, driven partly by investors speculating on when the Federal Reserve might be able to halt its monetary-tightening campaign. On Wednesday, Fed policymakers held the benchmark rate steady while leaving the door open to a possible hike next month.

“Coupled with geopolitical uncertainty, this ambiguity around monetary policy will likely have an impact on the overall economic landscape and may continue to stall improvements in the housing market,” said Sam Khater, Freddie Mac’s chief economist.

Higher mortgage rates are sidelining buyers and deterring homeowners with cheaper loans from selling. That is keeping the supply of listings tight and pushing up costs for what is on the market. Across the US, home prices reached a peak in August after seven straight months of gains, data from S&P CoreLogic Case-Shiller showed this week.

A borrower with a US$600,000 mortgage would pay about US$4,303 a month at the current 30-year average rate. That is US$331 more than a year ago and US$1,702 more than at the beginning of 2022. BLOOMBERG

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