In an unanticipated development, U.S. mortgage rates rose for the fourth consecutive week, casting doubt on the housing market’s stability. As inflation showed signs of easing, many hoped for interest rate cuts from the Federal Reserve. However, the increasing borrowing costs offset these hopes, causing concern among potential homeowners.
Current Mortgage Rates: According to a recent survey, the standard 30-year fixed mortgage rate reached 6.54%, the highest since early August, but still below May’s 7.22%. Although rates dipped to 6.08% in late September, sparking optimism, the impact on home purchasing activity was minimal.
Market Reaction: Despite better-than-expected economic data, such as robust employment growth and strong retail spending, which shifted market expectations, home sales have declined. Existing home sales fell to their lowest level since October 2010, with only 3.84 million transactions on an annualized basis last month. Mortgage applications have also fallen for four weeks.
Future Prospects: Many families favor spring for buying or selling homes, taking advantage of favorable conditions, and with the Federal Reserve signaling continued interest rate cuts through 2025, buyers might be waiting for rates to drop further. The tight housing supply continues to drive up prices, with a consistent rise over the past 15 months according to the National Association of Realtors.
In summary, while economic indicators show strength, rising mortgage rates, influenced by government fiscal concerns and the bond market, are affecting potential buyers’ decisions. The looming presidential election adds another layer of unpredictability to the financial landscape.
Source: 週間の住宅ローン金利が上昇、住宅需要に影響を与える要因
The source of the article is from the blog foodnext.nl