From CNBC: 2024-08-02 16:07:48

The average rate on a 30-year fixed mortgage dropped to 6.4%, the lowest since April 2023. The 15-year fixed rate fell to 5.89%, the lowest since May 2023, following a weaker-than-expected job growth report in July. Mortgage rates may continue to drop with potential rate cuts by the Fed.

Buyers facing high interest rates, home prices, and low inventory have seen a dramatic drop in rates in just five days. Affordability has improved with lower rates, potentially driving a surge in demand. Mortgage applications for home purchases have been lower compared to last year, but this drop in rates could stimulate activity.

The drop in mortgage rates may lead to increased home purchases and refinancing. This trend is expected to continue as longer-term rates decrease, potentially creating opportunities for more buyers to enter the market. With rates at their lowest levels in months, the housing market could see a significant uptick in activity.



Read more at CNBC: Mortgage rates plunge to lowest level in over a year