Falling mortgage rates keep some homebuyers coming back
Average daily mortgage rates hit a four-month high last Wednesday, surpassing 7% a week ago. However, the banking crisis unfolding in the United States Helped lower mortgage interest rates. The daily average of 30-year fixed-rate mortgages closed this week at 6.55%, 0.5 percentage points below its March 8 peak.
“It’s so volatile right now that when interest rates go down, buyers jump on it. This shows that there are many people waiting for the right time to enter the market. ” redfin Chen Zhao, chief economic researcher. “What happens to mortgage rates from here depends a lot on how the Fed reacts to the disruption. In the banking industry in the United States and abroad, alongside stubbornly high inflation. ”
While lower interest rates have made homes cheaper to buy and prices have fallen, Average mortgage payments are still nearly a quarter of what they were last year. Demand across the market remains weak, even as homebuyers rush to cut prices. Pending home sales are down 17% from 12 months ago. Biggest drop in 6 weeks.