Mortgage rates fell for the eighth week. The average interest rate on a 30-year fixed mortgage was 6.67% for the week that ended Wednesday, down from 6.95% a week earlier, according to data released Thursday by Freddie Mac.
As recently as late October, rates were 7.79% — the highest in over two decades. The drop in borrowing cost saves new buyers hundreds of dollars each month, but experts said consumers shouldn’t expect a drastic improvement in 2024. Interest rate changes are based on various factors, including inflation expectations and Fed Reserve policy. Rates will bottom out around 6.4% in 2024 as economic growth and inflation remain elevated enough to prevent further declines in borrowing costs. Rates have fallen since October, however, mainly because multiple economic reports have signaled that inflation is slowing. The most recent decline comes after the Federal Reserve signaled last week that it may be done raising its benchmark interest rate. The decline to 6.67% from 7.79% equates to $486 in monthly savings for a $800,000 home, assuming a buyer puts 20% down.
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May 2024
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