US mortgage interest rates fall to a low level for the first time in 4 months

According to Freddie Mac, as of 7/18, the average interest rate for a 30-year fixed mortgage has dropped sharply by 12 basis points to 6.77%, which is the lowest level since mid-March.

This decline coincided with rising dovish expectations for the Federal Reserve (Fed) and falling long-term government bond yields amid recent signs of weakening labor markets and easing inflationary pressure.

A year ago, the average interest rate for a 30-year loan was 7.02%.

“Sam Kater, chief economist at Freddie Mac, said, “Mortgage interest rates are moving in the right direction, and the economy remains solid.

“However, home buyers have yet to respond to falling interest rates, and demand for purchase applications is still around 5% below spring, when interest rates were almost the same. This is not unusual, and demand may weaken when interest rates fall, and such a paradox occurs to confirm that interest rates do not drop any further before buyers decide to buy.

Source: Freddie Mac