The average rate on the 30-year fixed-rate mortgage plummeted to 6.47% from 6.73%, marking the lowest level in over a year, as reported by Freddie Mac.
This dip in mortgage rates is attributed to the anticipated Federal Reserve interest rate cut in September, causing long-term bond yields to decrease and subsequently pushing mortgage rates down.
The big picture: The decrease in rates has positively impacted prospective homebuyers’ purchasing power, making it an opportune time for them to consider making a move in the housing market.
- Despite the drop in mortgage rates, the increase in applications for mortgage purchase has been modest, with buyers still observing the market before making a move.
- The market trend indicates a shift from a seller’s market to a buyer’s market as supply and demand dynamics approach a more balanced condition.
- Analysts at Goldman Sachs have revised expectations for home price appreciation, now anticipating a 4.5% increase this year and a 4.4% rise next year, up from previous forecasts.
