U.S. mortgage rates fall below 7 per cent for first time since early April
Mortgage rates in the US dipped below seven per cent for the first time in more than a month.
The average for a 30-year, fixed loan was 6.94 per cent, down from 7.02 per cent last week, Freddie Mac said in a statement Thursday. It was the third straight week of declines. The market normally kicks into high gear during this time of year when warmer weather draws more people out for open houses. But mortgage rates hovering close to seven per cent and prices that keep climbing are preventing many buyers from being able to afford properties.
It’s weighing on sales, with transactions for previously owned homes falling in April for a second straight month and new home sales down as well.
The recent easing of rates and a sign that inventory of homes for sale is ticking up may provide some relief to buyers.
“Greater supply coupled with the recent downward trend in rates is an encouraging sign for the housing market,” Sam Khater, Freddie Mac’s chief economist, said in a statement.
The U.S. Federal Reserve’s timing on rate cuts largely will depend on how the economy fares. Earlier this month, policymakers agreed that interest rates needed to be higher for longer, while “many” questioned whether policy was restrictive enough to tame inflation to the Fed’s target, according to minutes released this week.
https://www.bnnbloomberg.ca/u-s-mortgage-rates-fall-below-7-per-cent-for-first-time-since-early-april-1.2076727
Even the stoopid economist doesn’t get that the Fed has accepted 3% inflation (which is still a farce) rather than 2% so his dumb ass comment removed/edited.
Just get that the home market is ded and won’t come back any time soon as peeps are not going to willingly hand over a 3-4% mortgage by choice for one @7%
Still have peeps that have to move for various reasons but by choice not very many at this level as it’s simply unaffordable and not a smart decision imo.