Mortgage rates drop to lowest levels since August

Watch Mortgage rates drop to lowest levels since August - The Street on Dailymotion

Transcript

00:00 I'm JD Durkin reporting from the New York Stock Exchange.

00:03 Stocks are in the green to close out today's session.

00:05 The Dow Jones Industrial Average closed up over 150 points, the tech-heavy NASDAQ up

00:10 nearly two-tenths of a percent, while the S&P 500 closed two-tenths of a percent higher.

00:16 All of this optimism comes as investors cheer positive retail sales data after November

00:21 showed unexpected growth, emphasizing the strength of the U.S. consumer.

00:26 Investors are also holding out a bit of hope that the Fed could avoid triggering a recession

00:30 after it unveiled plans to lower interest rates in 2024.

00:34 Turning our attention now to the housing market, mortgage rates have fallen back below 7 percent

00:39 for the first time since August.

00:41 Rates have now dropped for the seventh consecutive week.

00:44 They now stand at 6.95 percent.

00:47 And according to Freddie Mac, rates may drop even further, with its chief economist saying,

00:52 "Given inflation continues to decelerate and the Federal Reserve Board's current expectations

00:58 that they will lower the federal fund's target rate next year, we likely will see a gradual

01:03 thawing of the housing market in the new year."

01:06 And as you might expect, with rates continuing to drop, mortgage applications are on the

01:11 rise.

01:12 Applications have now risen for the sixth consecutive week, according to the Mortgage

01:16 Bankers Association.

01:17 And while rates are nowhere near their August high of 7.79 percent, rates are still higher

01:23 than they were at this time last year, when they stood at 6.31 percent.

01:28 That'll do it for your daily briefing.

01:30 From the floor of the New York Stock Exchange, I'm JD Durkin with The Street.

01:33 Thanks.

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