Connect with us

Hi, what are you looking for?


Mortgage rates are slipping after a rapid rise

Halloween is done, scary season is ending, and the horrors of the housing market are getting more gentle — if only a little bit.

Mortgage rates are coming down slightly after a dramatic rise. The government-backed mortgage company Fannie Mae says the interest rate on a 30-year fixed-rate mortgage was down to 6.73% on Thursday. It peaked at more than 8% in mid-October.

Since rates have come down, demand for mortgages is starting to tick higher. It’s a modest increase, as the Mortgage Bankers Association says demand in early November was 12% lower than the same time in 2022.

Borrowing costs for mortgages are at two-decade highs, but prices have continued to rise because so few houses are on the market. That’s put home ownership out of reach for large numbers of people.

The situation has changed because investors are becoming convinced that the Federal Reserve might really be done raising rates. It has raised its benchmark interest rate from near-zero in early 2022 to a range of 5.25% to 5.5% by July, and mortgage rates, along with interest rates on auto loans, credit cards and other financial products, moved higher in tandem.

The gap between typical interest rates and mortgage rates also got unusually large.

While the Fed hasn’t raised interest rates in more than three months, mortgage rates had continued to rise because investors thought the central bank was likely to keep raising them in the future.

But there are signs inflation is continuing to fade, and that the Fed might be satisfied with the progress it’s made in getting price gains under control. That’s let mortgage rates stabilize and start to come down

However, over the longer term, lower mortgage rates might not make houses more affordable, as home prices tend to rise when mortgage rates go down precisely because buyers have an easier time borrowing money.

This post appeared first on NBC NEWS

Enter Your Information Below To Receive Free Trading Ideas, Latest News And Articles.

    Your information is secure and your privacy is protected. By opting in you agree to receive emails from us. Remember that you can opt-out any time, we hate spam too!

    You May Also Like

    Editor's Pick

    LIVE OAK, Fla. — President Biden traveled to Florida on Saturday to survey the damage caused by Hurricane Idalia, part of a storm response...


    President Biden is asking his Cabinet to ‘aggressively execute’ plans for federal employees to return to their offices for work this fall after years...


    Union members at Ford, Stellantis and General Motors have ratified a new 4½-year contract, locking in at 11% pay increases secured after a six-week...


    A group of House Democrats penned a letter Thursday to several top Biden administration and White House officials, demanding the immediate continuance of uninterrupted...

    Disclaimer:, its managers, its employees, and assigns (collectively “The Company”) do not make any guarantee or warranty about what is advertised above. Information provided by this website is for research purposes only and should not be considered as personalized financial advice. The Company is not affiliated with, nor does it receive compensation from, any specific security. The Company is not registered or licensed by any governing body in any jurisdiction to give investing advice or provide investment recommendation. Any investments recommended here should be taken into consideration only after consulting with your investment advisor and after reviewing the prospectus or financial statements of the company.

    Copyright © 2024