Mortgage rates in the US fell for a fourth week, inching closer to 6% even as economic uncertainty is keeping buyers pinned to the sidelines.
The average for 30-year, fixed loans was 6.17%, down from 6.19% last week and still the lowest level since early October 2024, data from Freddie Mac show.
Rates fell following the Federal Reserve’s widely-anticipated quarter-point reduction on Wednesday. Chairman Jerome Powell also cautioned investors not to expect more cuts this year.
The drop in borrowing costs, along with a surging stock market, would typically predict a surge in demand, and economists had expected to see a slight increase in pending sales of existing homes last month.
That didn’t happen: Sales were flat, despite growing inventories, the market blunted by anxieties about tariffs, job security and the ongoing government shutdown.
Rates aren’t likely to move much lower “absent surprisingly slower economic activity,” Realtor.com chief economist Danielle Hale said, noting that the market has already priced in the most recent cut.
Economic concerns “could also mean rising rates through the end of the year,” said Bright MLS economist Lisa Sturtevant. “For prospective buyers who are financially ready, right now could be a sweet spot for lower rates and more inventory.”
Source: theedgemalaysia