Mortgage Rates Decline for Third Consecutive Week Amid Falling Homebuyer Demand
Average interest rates for 30-year fixed-rate mortgages with conforming loan balances dropped to 7.3% last week, marking the third straight weekly decline. Despite this downward trend, mortgage demand continues to slide as total application volume fell by 1% week-over-week. The decrease in rates follows the Federal Reserve's decision to pause interest rate hikes during its October meeting. The housing market remains largely stagnant, with homebuyer applications down 19% compared to a year ago. Refinance demand also remains significantly depressed, sitting 60% lower than last year due to rates remaining roughly one percentage point higher than historical levels. Consequently, more borrowers are shifting toward adjustable-rate mortgages (ARMs) to manage initial monthly payments.
Topics: Federal Reserve housing market mortgage rates refinancing demand
Part of the story Redfin Report: U.S. Home Prices and Mortgage Payments Decline for Four Consecutive Weeks (6 articles)