US mortgage rates have eased slightly, offering modest relief for homebuyers struggling with rising prices and high borrowing costs. The average rate on a 30-year US mortgage fell to 6.72% from 6.74% last week, according to Freddie Mac.
While the easing of mortgage rates may provide some respite, it is unlikely to have a significant impact on the sluggish US housing market. Home sales remain stagnant, with pending home sales down 2.8% from June last year, according to the National Association of Realtors.
Economists expect the average rate on a 30-year mortgage to remain above 6% this year, but some forecasts predict it could ease to around 6.4% by the end of the year. However, this may not be enough to spur a turnaround in home sales.
The Federal Reserve’s interest rate policy and bond market expectations continue to influence mortgage rates. The Fed’s policymaking committee voted to hold its main interest rate steady, but some economists believe a September rate cut could lead to lower mortgage rates by the end of the summer.
Despite the easing of mortgage rates, prospective homebuyers remain cautious due to economic uncertainty and high inflation concerns. Mortgage applications fell 3.8% last week from a week earlier, according to the Mortgage Bankers Association.
Source: https://apnews.com/article/mortgage-rates-housing-interest-financing-home-8d1384348e2d6025e62011fa3f9fbd4a