Post by Bill Brown on
Mortgage Rate Decline Spurs Home Loan Applications This week witnessed a notable drop in the 30-year fixed-rate mortgage, decreasing by 0.25%, as reported by Freddie Mac and the Mortgage Bankers Association. The rate, which now stands at 7.5%, has spurred an increase in home loan applications—the first in a month. Despite this uptick, purchase applications are still trailing by 20% compared to the same period last year. Dip in Mortgage Rates This Week The recent dip in mortgage rates, which had been lingering near 8%, offers a brief respite from what have been the highest rates in 20 years. According to Freddie Mac's Chief Economist Sam Khater, this week's reduction marks the most significant weekly decrease since last November. The gap between mortgage rates and the 10-year Treasury bond continues to be wider than usual, hinting at the potential for further reductions in mortgage rates, as pointed out by Jessica Lautz, the deputy chief economist at the National Association of … Read more