Mortgage Rates Drop to Lowest Since August, Offering Relief to Housing Market
• Average 30-year fixed mortgage rate dropped to 6.95%, the lowest since August 2022, extending a 7-week decline since late October 2022 high of 7.79% • Rate drop echoes decline in 10-year Treasury yield as inflation cools and Fed signals potential rate cuts in 2023 • Higher rates throughout 2022 have reduced home affordability and weighed on home sales even as prices stay high due to low inventory • Recent declines in rates welcomed by buyers - mortgage applications up for 6 straight weeks • Average rate still much higher than 3.12% in late 2020, discouraging sales by homeowners with ultra-low rate locks