US mortgage rates decline to 6.43%, Freddie Mac says

[NEW YORK] Mortgage rates in the US fell, giving homebuyers more purchasing power as the key spring selling season came to a close.

The average for a 30-year fixed loan declined to 6.43 per cent from 6.49 per cent a week earlier, Freddie Mac said in a statement on Thursday (Jul 2). The rate is the lowest since mid-May and down from 6.67 per cent a year ago.

The property market has been held back by borrowing costs that increased after the conflict in the Middle East pushed up energy prices and inflation. Since late May, rates have been hovering close to 6.5 per cent, offering a measure of stability.

Sellers are increasingly willing to price their homes to attract buyers. Nationally, listing prices dropped 2.5 per cent in June, the steepest annual decline in data going back to 2017, according to Realtor.com. At the same time, signed contracts rose to 3.7 per cent.

“Sellers are reading market conditions and are pricing accordingly from the start rather than listing high and cutting later, and buyers are taking note and making bids,” said Danielle Hale, chief economist at Realtor.com. “This is a welcome sign that we are in a functioning market.”

A slower-than-anticipated increase in US jobs drove stocks higher on Thursday as bonds yields fell on speculation the Federal Reserve won’t be forced to raise interest rates any time soon. BLOOMBERG