00:00Mortgage rates just saw their biggest one-day drop in over a year, and now some lenders are
00:05quoting in the high fives. After a weaker-than-expected jobs report, the average 30-year fixed
00:11rate plunged 16 basis points down to 6.29%. That's the lowest since October 3rd, breaking
00:18out of the high 6% range where rates have been stuck for months. This isn't just a chart move,
00:23it changes real buying power. On a $450,000 home with 20% down, the monthly payment drops
00:29about $169 compared to when it's at 7%. That can mean the difference between affording a home
00:35or qualifying for the mortgage in the first place. Homebuilder stocks like Lennar, DR Horton,
00:41and Pulte jumped roughly 3% on the news, and the ITB homebuilder ETF is up almost 13% over the past
00:48month. But here's the catch, mortgage demand hasn't picked up yet. Analysts say buyers may be waiting
00:53until the rates are firmly in the 5% range. Do you think this drop is enough to bring homebuyers back?
00:59Or are people still sitting in and out?
Comments