Recent Drop in Mortgage Rates: Positive Housing News for Fall
Mortgage rates experienced a decline for the second consecutive week, averaging 7.12% for a 30-year fixed-rate loan in the week ending Sept. 7, as reported by Freddie Mac.
This decrease in rates comes as a relief, following a spike to a 22-year high of 7.23% two weeks earlier. Nevertheless, the current rates remain substantial, surpassing double the figures from two years ago when they dipped below 3%. Consequently, the housing market in America has come to an almost complete halt.
Realtor.com® data scientist, Sabrina Speianu, stated, “The housing market has been stagnant for over a year as it awaits stabilization or a decline in mortgage rates. As we head into the fall housing season, mortgage rates, home prices, and housing availability continue to pose challenges for both homebuyers and sellers, who often need to purchase a new home while selling their current one.”
Attention now turns towards the Federal Reserve’s upcoming meeting on Sept. 19 and 20, where discussions regarding a benchmark interest rate increase will take place. The economic future is being analyzed to predict whether mortgage rates will ascend or descend in response.
According to Speianu, “Macroeconomic indicators such as job market strength and inflation are being closely monitored by the Federal Reserve to determine the trajectory of interest rates.” With a strong yet cooling job market and a slowdown in inflation, it is predicted that rate hikes in September are unlikely, and it is also less probable that rates will increase before the year concludes.
The prospect of a halt in rate increases suggests that the housing market may finally start to show some signs of progress.