Mortgage Rates Creep Lower, While Home Prices Remain High.
NBC reports that mortgage rates have
finally started to come back down following
a dramatic rise in the housing market.
On November 16, Fannie Mae said
interest rates on 30-year fixed-rate
mortgages were down to 6.73%. .
In October, rates peaked at over 8%. .
The lower rates have caused demand
for mortgages to slowly creep higher. .
Despite the positive change, the Mortgage Bankers
Association said demand was 12% lower in early
November than it was at the same time last year.
While borrowing costs on mortgages have
reached a two-decade high, shortages in the
housing market continue to drive prices higher.
The Federal Reserve has been raising rates
in an attempt to manage high inflation,
increasing its benchmark rate from near-zero
last year to as high as 5.5% in July of this year.
The hikes have driven up rates
for mortgages, auto loans,
credit cards and other financial products. .
Signs of inflation starting to fade have fueled
predictions that the Fed may be satisfied
with its efforts to bring prices under control.
NBC reports that lower rates may not
make homes more affordable over the long term,
as prices tend to go up when rates fall
because of increased buyer borrowing power