US Mortgage Rates at Their Lowest Level Since October Last Year

According to a report by Jinse Finance, U.S. mortgage rates have stabilized after four consecutive weeks of decline. In a statement, Freddie Mac noted that the average rate for a 30-year fixed mortgage stands at 6.58%, unchanged from last week, when it dropped to the lowest level since October of last year. Over the past few months, rates have fallen enough to potentially entice some hesitant homebuyers to move off the sidelines. In areas with a backlog of listings, sellers are willing to negotiate and offer assistance with closing costs and other concessions. However, affordability remains a significant barrier, especially for first-time buyers. Additional data shows that existing home sales climbed in July as price increases slowed. But this does not mean the market has become affordable: some institutions report that home prices have surged by more than 50% since early 2020. Danielle Hale, chief economist at Realtor.com, stated, “Higher interest rates have eroded the real purchasing power of the typical American household. This dynamic is forcing many buyers to adjust their expectations, whether that means looking for a smaller home, moving farther away, or simply postponing the dream of homeownership.”