Mortgage Rates Plummet, Reaching New Lows in 4 Weeks

Mortgage rates have dropped for the fourth consecutive week, with the average rate on a 30-year fixed mortgage declining to 7.29% from 7.44%. This decrease has prompted some homebuyers, including entry-level buyers, to reenter the market. However, high home prices and rates, along with limited inventory, continue to impact affordability. The volume of mortgage applications for home purchases has increased, particularly among first-time buyers who are also turning to new construction. Despite these positive signs, demand still outweighs supply, and the market remains challenging for moderate-income households. The Federal Reserve has kept its benchmark interest rate steady, but more rate hikes are possible. Some experts believe that mortgage rates may have already peaked.