US mortgage rates decrease to lowest level since February 2023
MORTGAGE rates in the US dropped to the lowest since February 2023.
The average for a 30-year, fixed loan was 6.2 per cent, down from 6.35 per cent a week earlier, Freddie Mac said on Thursday (Sep 12).
Borrowing costs are easing from recent highs, dropping in the past five out of seven weeks. While the slide has coaxed some buyers off the fence, high prices and a slim supply of listings has kept most on the sidelines. Others are waiting with the expectation that mortgages may get even cheaper later this year.
“Despite the improving mortgage rate environment, prospective buyers remain on the sidelines, as they negotiate a combination of high house prices and persistent supply shortages,” Sam Khater, Freddie Mac’s chief economist, said.
Investors expect the Federal Reserve to cut its benchmark interest rate at its meeting next week, with the market indicating a likely reduction of 25 basis points.
High housing costs have continued to put a strain on many consumers. Shelter inflation was a major reason a measure of consumer price growth unexpectedly picked up in August, signalling that policymakers may need to take a more measured approach to cutting rates.
“Home prices have not fallen considerably at the national level, despite cooling buyer demand, as inventory remains below pre-pandemic levels,” said Hannah Jones, a Realtor.com senior economist. BLOOMBERG
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