Mortgage Rates Drop to Lowest Levels Since April 2023 Amid Declining Interest Rates
Current State of Mortgage Rates
The Federal Reserve won’t make its next rate decision until September 18, but homebuyers are already getting a break on borrowing costs. The average rate for a 30-year fixed mortgage now sits at its lowest point since April 2023, at 6.44% for the week ended August 23, according to the Mortgage Bankers Association.
Impact on Homebuyers
With interest rates declining, more home hunters are applying for mortgages. Cheaper borrowing costs could entice some buyers back into the real estate market after many were priced out by high mortgage rates, which were above 7% earlier this year, and record-high home prices.
Factors Influencing Mortgage Rates
Even though the Fed’s next rate decision is weeks away, mortgage rates are falling due to influences from economic factors, such as the strength of the job market. Recent weak economic data, including an underwhelming July jobs report, have raised concerns about the U.S. economy showing cracks under the highest federal funds rate in 23 years.
This article was prepared using information from open sources in accordance with the principles of Ethical Policy. The editorial team is not responsible for absolute accuracy, as it relies on data from the sources referenced.