Nasdaq, S&P 500 lead market gain after retail sales, jobs data

Mortgage rates rose slightly from the previous week as investors continued to expect the Federal Reserve to cut interest rates next month.

The average rate on a 30-year fixed-rate mortgage was 6.49%, up from 6.47% last week. Freddie Mac said on Thursday, marking its lowest level in more than a year. A year ago, the average rate for a 30-year fixed-rate loan was 7.09%.

Separately, the average rate for a 15-year fixed mortgage was 5.66%, up from 5.63% a week ago. The rate for the 15-year loan was 6.46% a year ago.

“Although rates rose slightly this week, they are still less than half a percentage point from the same time last year,” Sam Cutter, Freddie Mac’s chief economist, wrote in a statement.

“In 2023, the 30-year fixed-rate mortgage hit nearly 8 percent, putting the brakes on the housing market. Now, the 30-year fixed rate is 6.5 percent and will drop in the coming months as inflation continues to slow. Low prices are a boon for potential buyers and sellers. news.

Despite this week’s rise, the recent downward trend in rates has spurred some activity in the market. Home purchase applications were up 3% from the previous week, but down 8% from the same week a year ago. The Mortgage Bankers Association (MBA) released on Wednesday.

Meanwhile, homeowners are taking advantage of the opportunity to restructure their existing loans.

Home loan refinancing applications were up 35% from the previous week and 118% higher than the same week a year ago, the strongest weekly gain since May 2022, according to MBA.

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