US mortgage rates fall for third week, dropping to 7.44%
MORTGAGE rates in the US fell for a third week, easing to the lowest in more than a month.
The average for a 30-year, fixed loan was 7.44 per cent, down from 7.5 per cent last week, Freddie Mac said on Thursday (Nov 16).
The drop brings slight relief to homebuyers that have been facing the highest borrowing costs in decades. High rates have deterred many sellers, prompting them to keep their homes off the market so they can hold on to cheaper loans. The lack of homes for sale has kept prices high.
The market is warming up as rates slip. A measure of mortgage loan applications rose the most in more than a month, according to Mortgage Bankers Association data for the week ended Nov 10.
“The combination of continued economic strength, lower inflation and lower mortgage rates should likely bring more potential homebuyers into the market,” said Sam Khater, Freddie Mac’s chief economist.
Economic data is pointing to a potential pullback by the Federal Reserve in its campaign to hike rates and cool the economy. A core measure of inflation slowed in October. Prices paid to producers unexpectedly fell that month by the most since April 2020.
“Recent incoming data, such as that from this week, is making a rate hike far less likely,” said Jiayi Xu, a Realtor.com economist. “Mortgage rates are likely to continue dropping, as they have in recent weeks.” BLOOMBERG
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