In This Article:
(Bloomberg) -- Mortgage rates in the US fell for a second straight week.
Most Read from Bloomberg
-
Kansas City Looks Back on its Long, Costly Ride With Microtransit
-
NYC’s Run-Down Bus Terminal Gets Approval for $10 Billion Revamp
-
As Wars Rage, Cities Face a Dark New Era of Urban Destruction
-
Riyadh Metro Partially Opens in Bid to Ease City’s Traffic Jams
The average for a 30-year fixed loan was 6.69%, the lowest since Oct. 24 and down from 6.81% last week, Freddie Mac said in a statement Thursday.
Borrowing costs are still considerably higher than they were in September, and meaningful relief may be a ways off. Redfin Corp. expects 30-year mortgage rates to stick fairly close to 7% throughout 2025. Traders speculate that the Federal Reserve will reduce its policy rate just twice next year if the economy stays strong and President-elect Donald Trump enacts proposed tax cuts and tariffs, the brokerage said.
Still, even with a modest drop in rates, “purchase demand has notably improved,” Sam Khater, Freddie Mac’s chief economist, said in the statement. “The responsiveness of prospective homebuyers to even small changes in rates illustrates that affordability headwinds persist.”
House hunters have long been sidelined by high prices and a shortage of desirable listings. Now, the supply of homes for sale is “finally approaching pre-pandemic levels,” said Realtor.com Senior Economist Joel Berner, “but with listing prices and mortgage rates remaining stubbornly high, buyers are seeing plenty of options but few that they can afford.”
Most Read from Bloomberg Businessweek
©2024 Bloomberg L.P.