Mortgage rates plunge to lowest level in 15 months, a silver lining in market storm
By
Zachary Halaschak
August 7, 2024 10:57 am
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Mortgage rates have fallen to their lowest level since May 2023, according to the latest report from the Mortgage Bankers Association.
The MBA report indicated that mortgage rates fell last week to 6.55%.
Would-be homebuyers have faced painful mortgage rates for years now, so the downward shift is a silver lining for the flailing housing market.
Additionally, the market composite index, a measure of mortgage loan application volume, increased 6.9% on a seasonally adjusted basis from the previous week, a sign that the lower mortgage rates have lured some back into the housing market.
“Mortgage rates decreased across the board last week and mortgage application volume reached its highest level since January of this year,” said Joel Kan, MBA’s vice president and deputy chief economist. “Despite the downward movement in rates, purchase activity only saw small gains, with an increase in conventional purchase applications offset by decreases in government purchase applications.
“For-sale inventory is beginning to increase gradually in some parts of the country and homebuyers might be biding their time to enter the market given the prospect of lower rates,” Kan added.
The recent decline in mortgage rates comes after they peaked this year at about 7.40% in April. They have gradually slid lower since then as the Federal Reserve eyes its first interest rate cuts.
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https://www.washingtonexaminer.com/policy/finance-and-economy/3113601/mortgage-rates-lowest-level-15-months/
