{"id":2329347,"date":"2024-08-22T16:07:01","date_gmt":"2024-08-22T20:07:01","guid":{"rendered":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/mortgage-rates-drop-to-15-month-low-but-home-prices-keep-rising\/"},"modified":"2024-08-22T16:10:30","modified_gmt":"2024-08-22T20:10:30","slug":"mortgage-rates-drop-to-15-month-low-but-home-prices-keep-rising","status":"publish","type":"post","link":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/mortgage-rates-drop-to-15-month-low-but-home-prices-keep-rising\/","title":{"rendered":"Mortgage Rates Drop to 15-Month Low, But Home Prices Keep Rising"},"content":{"rendered":"<aside class=\"mashsb-container mashsb-main mashsb-stretched\"><div class=\"mashsb-box\"><div class=\"mashsb-count mash-medium\" style=\"&quot;\"><div class=\"counts mashsbcount\">22<\/div><span class=\"mashsb-sharetext\">SHARES<\/span><\/div><div class=\"mashsb-buttons\"><a class=\"mashicon-facebook mash-medium mash-nomargin mashsb-noshadow\" href=\"https:\/\/www.facebook.com\/sharer.php?u=https%3A%2F%2Fwww.conservativenewsdaily.net%2Fbreaking-news%2Fmortgage-rates-drop-to-15-month-low-but-home-prices-keep-rising%2F\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Facebook<\/span><\/a><a class=\"mashicon-twitter mash-medium mash-nomargin mashsb-noshadow\" href=\"https:\/\/twitter.com\/intent\/tweet?text=&amp;url=https:\/\/www.conservativenewsdaily.net\/breaking-news\/?p=2329347&amp;via=ConservNewsDly\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Twitter<\/span><\/a><a class=\"mashicon-subscribe mash-medium mash-nomargin mashsb-noshadow\" href=\"#\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Subscribe<\/span><\/a><div class=\"onoffswitch2 mash-medium mashsb-noshadow\" style=\"display:none\"><\/div><\/div>\n            <\/div>\n                <div style=\"clear:both\"><\/div><\/aside>\n            <!-- Share buttons by mashshare.net - Version: 4.0.47--><p>The article discusses the recent drop in mortgage rates, particularly the average rate on a 30-year mortgage, which fell to 6.46% from 6.49%, marking its lowest point in 15 months. This drop comes\u200c as a relief to homebuyers, especially compared to the average rate of 7.23% a year ago. Similarly, the average \u2062rate for \u200b15-year fixed\u200d mortgages \u200bdecreased from 5.66% to 5.62%.\u2062 <\/p>\n<p>Experts attribute the overall expected decline in mortgage rates to signs of decreasing inflation and a cooling job market,\u2062 which may prompt the Federal Reserve to lower its benchmark interest rate. Despite this encouraging trend, many potential homebuyers continue to hesitate due to high home prices and a limited \u2062supply of available properties. <\/p>\n<p>While refinancing applications have increased significantly, applications\u2064 for home purchase loans remain low. Economists predict that \u200cthe\u200d average 30-year mortgage rate will\u200d stay above 6% for the year, making it \u2064challenging for moderate-income and\u2064 first-time buyers to enter the housing market amid \u2064rising home prices.  <\/p>\n<p class=\"readmore\">\n    <button onclick=\"showReadMore()\" id=\"readmorebtn\">Read more&#8230;<\/button>\n<\/p>\n<hr id=\"line\">\n<span id=\"more\"><\/p>\n<p><?xml encoding=\"utf-8\" ?><?xml encoding=\"utf-8\" ?><?xml encoding=\"utf-8\" ?><?xml encoding=\"utf-8\" ?><?xml encoding=\"utf-8\" ?><?xml encoding=\"utf-8\" ?><?xml encoding=\"utf-8\" ?><?xml encoding=\"utf-8\" ?><?xml encoding=\"utf-8\" ?><?xml encoding=\"utf-8\" ?><?xml encoding=\"utf-8\" ?><?xml encoding=\"utf-8\" ?><?xml encoding=\"utf-8\" ?><?xml encoding=\"utf-8\" ?><?xml encoding=\"utf-8\" ?><?xml encoding=\"utf-8\" ?><?xml encoding=\"utf-8\" ?><\/p>\n<section>\n<p>The average rate on a 30-year mortgage eased this week to its lowest level in 15 months, welcome relief for home shoppers navigating a housing market that remains out of reach for many Americans.<\/p>\n<p>The rate fell to 6.46 percent from 6.49 percent last week, <a href=\"https:\/\/www.westernjournal.com\/ap-bidenomics-mortgage-rates-soar-highest-level-since-bill-clinton-president\/\" target=\"_blank\" rel=\"noopener\">mortgage<\/a> buyer Freddie Mac said Thursday. A year ago, the rate averaged 7.23 percent.<\/p>\n<p>The average rate is now the lowest it has been since mid-May last year, when it was 6.39 percent.<\/p>\n<p>Borrowing costs on <a href=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/mortgage-rates-hit-highest-level-since-2000-with-more-climbing-still-expected\/\" title=\"Mortgage rates reach 20-year high, further increase anticipated.\">15-year fixed-rate mortgages<\/a> also fell this week, good news for homeowners seeking to refinance their home loan at a lower rate. The average rate fell to 5.62 percent from 5.66 percent last week. A year ago, it averaged 6.55 percent, Freddie Mac said.<\/p>\n<p>Mortgage rates are expected to continue trending lower overall this year, as signs of waning inflation and a cooling job market have raised expectations that the Federal Reserve will cut its benchmark interest rate at its policy meeting next month, which would be the first such easing in four years.<\/p>\n<p>  <script> \t\t\t\tif( ! getCookie( 'ff_subbed' ) ) if( typeof FFADS.replace_ict !='undefined' ) if( FFADS.replace_ict ) eval( FFADS.replace_ict ); \t\t\t<\/script> <\/p>\n<p>&ldquo;Although mortgage rates have stayed relatively flat over the past couple of weeks, softer incoming <a href=\"https:\/\/www.westernjournal.com\/must-watch-cnn-host-blunt-message-biden-economic-comments-risk-offending-voters\/\" target=\"_blank\" rel=\"noopener\">economic<\/a> data suggest rates will gently slope downward through the end of the year,&rdquo; said Sam Khater, Freddie Mac&rsquo;s chief economist.<\/p>\n<p>After jumping to a 23-year high of 7.79 percent in October, the average rate on a 30-year mortgage has mostly hovered around 7 percent this year &mdash; more than double what it was just three years ago. But this month, the average rate has made its biggest downshift in more than a year, sliding to around 6.5 percent.<\/p>\n<p>The recent pullback in mortgage rates overall has sparked a pickup in applications for home refinancing loans, which are 23 percent higher than a month ago, according to the Mortgage Bankers Association.<\/p>\n<p>Applications for home purchase loans have lagged, however.<\/p>\n<p>&ldquo;We expect rates likely will need to decline another percentage point to generate buyer demand,&rdquo; Khater said.<\/p>\n<p>Elevated mortgage rates, which can add hundreds of dollars a month in costs for borrowers, have kept many would-be <a href=\"https:\/\/www.westernjournal.com\/kamala-harris-grand-plan-offer-new-home-buyers-free-25000-getting-ripped-shreds\/\" target=\"_blank\" rel=\"noopener\">homebuyers<\/a> on the sidelines, extending the nation&rsquo;s housing slump into its third year.<\/p>\n<p>Sales of previously occupied U.S. homes are running below last year&rsquo;s pace, though they ended a four-month slide in July.<\/p>\n<p>The rate on a 30-year mortgage is influenced by several factors, including how the bond market reacts to the central bank&rsquo;s interest rate policy decisions. That can move the trajectory of the 10-year Treasury yield, which lenders use as a guide to pricing home loans.<\/p>\n<p>The yield, which topped 4.7 percent in late April, was at 3.86 percent in afternoon trading in the bond market Thursday, following mixed data on the U.S. economy, which has been slowing under the weight of <a href=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/6-international-bad-guys-thrilled-to-have-biden-in-office-this-year\/\" title=\"6 International Bad Guys Thrilled to Have Biden in Office This Year\">high interest rates meant<\/a> to get inflation under control.<\/p>\n<p>Most economists expect the average rate on a 30-year home loan to remain above 6 percent this year. That may not be enough for many prospective homebuyers in the face of <a href=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/average-rate-on-a-30-year-mortgage-ticks-up-to-6-49\/\" title=\"Average Rate on a 30-year Mortgage Ticks Up to 6.49%\">record-high home prices<\/a> and a <a href=\"https:\/\/www.westernjournal.com\/ap-california-takes-lead-laws-affecting-gig-economy-privacy-2\/\" target=\"_blank\" rel=\"noopener\">shortage of properties<\/a> for sale in many markets.<\/p>\n<p>&ldquo;Home prices are still rising in most markets,&rdquo; said Lisa Sturtevant, chief economist at Bright MLS. &ldquo;Opportunities for moderate-income and first-time homebuyers will still be limited even with a drop in rates.&ldquo;<\/p>\n<p style=\"font-style: italic;\">The Western Journal has reviewed this Associated Press story and may have altered it prior to publication to ensure that it meets our editorial standards.<\/p>\n<div style=\"position: relative;\">\n<div class=\"ff-fancy-header-container\">  <\/div>\n<div class=\"entry-submit-correction inner-content\">\n<div class=\"correction-form\">\n<form style=\"display: none;\">\n<div class=\"sc-name-field\"> <label>* Name<\/label> <br \/> <input type=\"text\" name=\"name\" required> <\/div>\n<div class=\"sc--field\"> <label>* <\/label> <br \/> <input type=\"text\" name=\"\" required> <\/div>\n<p> <label>* Message<\/label> <br \/> <textarea name=\"message\" required><\/textarea>  <\/p>\n<div class=\"required-message\" style=\"display: none; padding-bottom: 15px;\">* All fields are required.<\/div>\n<p> <input type=\"submit\" value=\"Submit\" onclick=\"event.preventDefault(); firefly_sc();\">  <\/p>\n<div class=\"firefly-sc-confirm\" style=\"display: none;\">Success!<\/div>\n<\/p><\/form>\n<\/p><\/div>\n<\/p><\/div>\n<p> <script> \t\t\tfunction firefly_sc() { \t\t\t\tif( typeof window.captchaPublicKey==typeof undefined ){ \t\t\t\t\tconsole.error('window.captchaPublicKey is not defined'); \t\t\t\t} \t\t\t\tgrecaptcha.execute( window.captchaPublicKey, { action: 'submit_correction' } ).then( function( token ) { \t\t\t\t\tvar opts={ \t\t\t\t\t\taction:    'firefly_sc_submit', \t\t\t\t\t\tname:      document.querySelector( '.entry-submit-correction [name=\"name\"]' ).value, \t\t\t\t\t\t:     document.querySelector( '.entry-submit-correction [name=\"\"]' ).value, \t\t\t\t\t\tmessage:   document.querySelector( '.entry-submit-correction [name=\"message\"]' ).value, \t\t\t\t\t\tpost_id:   firefly_post_id, \t\t\t\t\t\tcap_token: token \t\t\t\t\t}  \t\t\t\t\tvar inputs=[ 'name', '', 'message' ];  \t\t\t\t\tfor( var i=0; i <inputs.length; i++ ) if( ! ( opts[inputs[i]]=document.querySelector( '.entry-submit-correction [name=\"' + inputs[i] + '\"]' ).value ) ) { \t\t\t\t\t\tdocument.querySelector( '.entry-submit-correction .required-message' ).style.display='block'; \t\t\t\t\t\treturn; \t\t\t\t\t}  \t\t\t\t\tdocument.querySelector( '.entry-submit-correction input[type=\"submit\"]' ).style.display='none'; \t\t\t\t\tdocument.querySelector( '.entry-submit-correction .firefly-sc-submitting-img' ).src=firefly_loading_gif_url; \t\t\t\t\tdocument.querySelector( '.entry-submit-correction .firefly-sc-submitting-img' ).style.display='inline-block';  \t\t\t\t\tconsole.log( 'ma subbing' );  \t\t\t\t\tif( firefly_post_id ) opts['post_id']=firefly_post_id;  \t\t\t\t\t\/* Send the data using post with element id name and name2*\/ \t\t\t\t\tvar posting=jQuery.post( firefly_ajax_url, opts );  \t\t\t\t\t\/* Alerts the results *\/ \t\t\t\t\tposting.done( function( response ) { \t\t\t\t\t\tif( response.success ) { \t\t\t\t\t\t\tconsole.log( response.data ); \t\t\t\t\t\t\tdocument.querySelector( '.entry-submit-correction .firefly-sc-submitting-img' ).style.display='none'; \t\t\t\t\t\t\tdocument.querySelector( '.entry-submit-correction .firefly-sc-confirm' ).style.display='block';  \t\t\t\t\t\t\tdataLayer.push( { 'event': 'submit-correction' } ); \t\t\t\t\t\t} \t\t\t\t\t}); \t\t\t\t}); \t\t\t} \t\t<\/script>  <\/div>\n<div class=\"ff-fancy-header-container\">  <\/div>\n<style> \t\t\t \t\t\t.insticator-unit.type-commenting{margin: 0 10px 25px 10px}@media screen and (max-width:1060px){#div-insticator-ad-cmt-1, #div-insticator-ad-cmt-2, #div-insticator-ad-cmt-3, #div-insticator-ad-cmt-4{margin: 0 auto 25px auto !important;}}#div-insticator-ad-cmt-1, #div-insticator-ad-cmt-2, #div-insticator-ad-cmt-3, #div-insticator-ad-cmt-4{height: 280px !important; width: 336px !important} \t\t<\/style>\n<div class=\"insticator-unit type-commenting\">\n<div class=\"insticator-ads\">   <script data-cfasync=\"false\" type=\"text\/javascript\"> \t\t\t\t\tif ( ! getCookie( \"ff_subbed\" ) ) { \t\t\t\t\t\tInsticator.ad.loadAd(\"div-insticator-ad-cmt-1\"); \t\t\t\t\t\tInsticator.ad.loadAd(\"div-insticator-ad-cmt-2\"); \t\t\t\t\t} else { \t\t\t\t\t\tdocument.getElementById(\"div-insticator-ad-cmt-1\").remove() \t\t\t\t\t\tdocument.getElementById(\"div-insticator-ad-cmt-2\").remove() \t\t\t\t\t} \t\t\t\t<\/script> <\/div>\n<div class=\"insticator-ads additional\">   <script data-cfasync=\"false\" type=\"text\/javascript\"> \t\t\t\t\tif ( ! getCookie( \"ff_subbed\" ) ) { \t\t\t\t\t\tInsticator.ad.loadAd(\"div-insticator-ad-cmt-3\"); \t\t\t\t\t\tInsticator.ad.loadAd(\"div-insticator-ad-cmt-4\"); \t\t\t\t\t} else { \t\t\t\t\t\tdocument.getElementById(\"div-insticator-ad-cmt-3\").remove() \t\t\t\t\t\tdocument.getElementById(\"div-insticator-ad-cmt-4\").remove() \t\t\t\t\t} \t\t\t\t<\/script> <\/div>\n<\/p><\/div>\n<\/section>\n<p><\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<p>The average rate for a 30-year mortgage decreased this week to its lowest point in 15 months, providing much-needed relief for homebuyers facing a challenging housing market that is still unaffordable for many Americans. According to Freddie Mac, the rate dropped from 6.49 percent last week to 6.46 percent this week. This time last year, the average was at 7.23 percent. Currently, it is the lowest since mid-May of last year when it was recorded at 6.39 percent.<\/p>\n<p>Additionally, borrowing costs for 15-year fixed-rate mortgages also declined this week, which is positive news for homeowners looking to refinance their loans at lower rates; the average rate fell from 5.66 percent to 5.62 percent this week compared to a year ago when it averaged 6.55 percent.<\/p>\n<p>Mortgage rates are anticipated to continue decreasing throughout the year due to signs of easing inflation and a slowing job market, leading many analysts to expect that the Federal Reserve will reduce its benchmark interest rate during its upcoming policy meeting next month\u2014the first such reduction in four years.<\/p>\n<p>Sam Khater, Freddie Mac\u2019s chief economist, noted that while mortgage rates have remained relatively stable over recent weeks, softer economic data indicates they may gradually decline through the end of the year. After reaching a peak of 7.79 percent in October\u2014its highest level in over two decades\u2014the average rate has mostly stayed around seven percent this year but has recently seen its most significant drop in over a year down to approximately 6.5 percent.<\/p>\n<p>This recent decrease has led to an increase in applications for refinancing home loans\u2014up by about 23% compared with last month\u2014according to data from the Mortgage Bankers Association; however, applications for new home purchase loans have not seen similar growth.<\/p>\n<p>Khater mentioned that another one-point drop might be necessary before buyer demand picks up significantly since high mortgage rates can add hundreds of dollars monthly costs and have kept many potential buyers on hold as housing sales continue into their third consecutive year of decline despite ending a four-month downturn in July.<\/p>\n<p>The interest on a typical thirty-year mortgage is influenced by various factors including reactions within bond markets regarding central bank interest policies which affect pricing strategies based on ten-year Treasury yields used by lenders as benchmarks; currently yielding around three point eight six after fluctuating earlier this spring above four point seven amid mixed economic signals indicating slowdowns due largely high-interest measures aimed at controlling inflation pressures across sectors nationwide.<\/p>\n<p>Most economists predict that thirty-year loan averages will remain above six percentage points throughout this calendar cycle\u2014a figure likely insufficient given record-high property values coupled with limited inventory available across numerous markets making opportunities scarce particularly among moderate-income or first-time buyers even if there are slight reductions observed within overall lending conditions moving forward according Lisa Sturtevant who serves as chief economist at Bright MLS<\/p>\n","protected":false},"author":1,"featured_media":2329348,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_mo_disable_npp":"","fifu_image_url":"https:\/\/www.westernjournal.com\/wp-content\/uploads\/2024\/08\/94cdcfea4b7b4f319df1ef707e30a256-scaled.jpg","fifu_image_alt":"","footnotes":""},"categories":[],"tags":[37423,38459,37637,27491],"class_list":["post-2329347","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","tag-economic-trends","tag-home-prices","tag-mortgage-rates","tag-real-estate"],"fifu_image_url":"https:\/\/www.westernjournal.com\/wp-content\/uploads\/2024\/08\/94cdcfea4b7b4f319df1ef707e30a256-scaled.jpg","_links":{"self":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts\/2329347","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/comments?post=2329347"}],"version-history":[{"count":0,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts\/2329347\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/media\/2329348"}],"wp:attachment":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/media?parent=2329347"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/categories?post=2329347"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/tags?post=2329347"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}