Mortgage Rates Plummet Below 7% Amidst Easing Home-Buying Pressures

Mortgage rates for 30-year fixed-rate loans have dropped below 7 percent, providing some relief to aspiring home buyers in the challenging housing market. The Federal Reserve's decision to hold off on raising interest rates further eases pressure on the real estate market. While borrowing costs remain higher than last year, the decline in rates has already led to an increase in mortgage applications. However, experts suggest that significant mortgage rate relief may still be months away. The widening spread between Treasury bond rates and mortgage rates is a major factor contributing to the higher borrowing costs. As the Fed is expected to cut its benchmark rate in 2024, economists anticipate that mortgage rates will continue to decrease, improving home affordability.