The latest data from the Chinese American Network on Thursday showed that homebuyers had good news after the Federal Reserve announced a rate cut on Wednesday. The average rate on a 30-year fixed mortgage fell to 6.09%, a 19-month low.
The average interest rate on a 30-year fixed mortgage was 6.09% as of Thursday, down from 6.20% last week and up from a 20-year high of 7.79% set last fall, according to Freddie Mac. There is a significant decrease. In addition, this mortgage interest rate is also the lowest level since early February 2023.
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Despite a retreat in mortgage rates, a separate report from the National Association of Realtors (NAR) on Thursday showed sales of previously owned homes fell nationwide in August.
However, the Federal Reserve cut interest rates significantly for the first time in four years on Wednesday and hinted that further rate cuts may be possible before the end of the year, which will provide an opportunity to unleash more housing demand.
Analysts pointed out that buying a house has become increasingly difficult for Americans in recent years. The Federal Reserve has chosen to raise interest rates several times to curb inflation, resulting in rising mortgage rates. Coupled with the shortage of housing supply in many areas, house prices have risen sharply.
On the other hand, the high borrowing costs caused by the interest rate hike not only plunged the real estate market into a downturn last fall, but also the signs of recovery in the real estate market were interrupted at the beginning of this year due to the long-term high interest rates.
Analysts said that mortgage rates are likely to fall further in the future, but this will depend on whether economic data clearly shows that the Fed will cut interest rates further.
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