Mortgage rates in US see initial drop in more than 2 months
Date
11/28/2024 3:16:57 AM
(MENAFN) The average contract interest rate for a 30-year fixed-rate mortgage in the US fell last week for the first time in more than two months, according to the Mortgage Bankers Association (MBA) on Wednesday. The rate dropped slightly from 6.90 percent to 6.86 percent compared to the previous week, marking a minor relief for borrowers. During the same period, mortgage applications experienced a 6.3 percent increase, indicating a positive response from homebuyers.
The MBA Purchase Index, which measures applications for single-family home purchases, rose significantly by 12 percent, reflecting increased interest in home buying. However, the Refinance Index, which tracks applications to refinance existing mortgages, declined by 3 percent, showing a continued slowdown in refinancing activity. These contrasting trends underscore the varied impacts of shifting mortgage rates on different market segments.
For 15-year fixed-rate mortgages, the average interest rate also decreased slightly, dropping from 6.32 percent to 6.29 percent over the week. This marginal reduction offers some relief to borrowers seeking shorter-term financing options, although rates remain elevated compared to previous years.
MBA Vice President Joel Kan highlighted that buyers remain active in the housing market despite elevated mortgage rates. He attributed this resilience to the growing inventory of available homes, which provides opportunities for buyers and signals underlying economic strength. This dynamic suggests continued demand even amid financial challenges.
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