Mortgage Rates See Biggest Weekly Drop in Over a Year, Offering Homebuyers Brief Respite
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Mortgage rates fell by the largest amount in a year this week, dropping 0.26 percentage points to an average of 7.50% for a 30-year fixed rate mortgage.
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The drop in rates could bring some buyers back into the market after rates surged for months, causing home sales and mortgage applications to plummet.
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Rates are responding to slower job growth and easing wage pressures, indicating the Fed may not need to raise rates further soon.
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Despite the rate drop, monthly mortgage costs are at a record high, up over $166 from last year due to still-elevated rates.
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Rates are expected to remain above 6% into 2024, marking a new long-term era of higher mortgage rates versus pre-pandemic levels.