Mortgage Rates Dip Below 7% for First Time Since August as Market Responds to Slowing Inflation
• Mortgage rates fell below 7% for the first time since August, marking the 7th straight week of declines as inflation slows and the Fed signals possible rate cuts in 2024 • The average 30-year fixed rate dropped to 6.95%, providing relief for potential homebuyers struggling with affordability • Applications increased for the 6th week in a row as borrower demand rises amid the rate drop, especially among first-time buyers • Falling rates may influence seller decisions, but low inventory will persist due to "lock-in effect" keeping existing owners from listing homes • The Fed kept rates unchanged but projected a lower median rate next year and hinted at possible 2024 cuts, further reducing mortgage rates