Mortgage rates in the U.S. dropped below 7% last week for the first time since March, leading to consecutive increases in home financing applications. The 30-year fixed mortgage interest rate fell to 6.94%, while 5-year variable mortgages dropped to 6.27%. This decrease in financing costs may help offset high listing prices and boost housing demand. Builders are offering incentives like mortgage rate discounts to stimulate orders. Overall mortgage applications rose to their highest level since mid-January, with purchase applications increasing by 1.6%.
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