Mortgage Rates Plummet, Boosting Housing Market
Mortgage rates on the 30-year fixed mortgage experienced the largest weekly drop in over a year, falling from 7.86% to 7.61%, according to the Mortgage Bankers Association. This decline coincided with a surge in mortgage application volume, which increased by 2.5% compared to the previous week. The drop in rates was driven by falling bond yields, as investors returned to US Treasuries after a period of volatility. However, despite the decrease, mortgage rates remain high, home prices are elevated, and housing inventory is low. Additionally, economists do not anticipate the Federal Reserve easing monetary policy in the near future, suggesting that rates may remain elevated.