Mortgage rates in US slip to lowest since middle of December
Strong consumer spending has helped bolster the US economy, but it’s also kept inflation high
MORTGAGE rates in the US dropped for a sixth week, falling to the lowest level in more than two months.
The average for 30-year loans was 6.76 per cent, down from 6.85 per cent last week, Freddie Mac said.
High borrowing costs have kept the housing market sluggish. In January, contracts to buy previously owned homes slumped to a record low. And sales of newly built properties fell to the lowest in three months.
The inventory lock that has gripped the housing market in recent years is starting to ease in certain spots. In the four weeks to Feb 23, active listings nationwide rose nearly 10 per cent from a year earlier, according to Redfin.
“The drop in mortgage rates, combined with modestly improving inventory, is an encouraging sign for consumers in the market to buy a home,” Sam Khater, Freddie Mac’s chief economist, said.
Strong consumer spending has helped bolster the US economy, but it’s also kept inflation high. Federal Reserve Bank of Atlanta president Raphael Bostic said earlier this week that policymakers should hold interest rates where they are to help tame price pressures. BLOOMBERG
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