Mortgage rates decline for second week, with no major drops expected soon

Mortgage Rates Fall for Second Week, Boosting Home-Purchase Applications

In a bit of good news for potential home buyers, mortgage rates have fallen for the second consecutive week, according to Freddie Mac’s latest Primary Mortgage Market Survey.

The average rate on the benchmark 30-year fixed mortgage dropped to 6.74% this week from 6.88% last week, while the average rate on the 15-year fixed mortgage also fell to 6.16%.

Despite this recent decrease, mortgage rates still remain high due to sticky inflation. However, the drop in rates has led to a boost in home-purchase applications as spring season approaches.

The Mortgage Bankers Association reported a 7.1% increase in their index of mortgage applications for the week ended March 8. Despite this jump, overall volume is still lower compared to last year.

With no relief in sight from high mortgage rates and soaring home prices, the housing affordability crisis seems to be a reality for the foreseeable future. Potential home buyers are now faced with the decision of whether to buy now or wait for rates to potentially move even lower.

As spring buyers may face higher mortgage rates, summer buyers are likely to encounter higher home prices and uncertainty around mortgage rates. It’s a challenging time for those in the market for a new home, as they weigh their options in a constantly changing landscape.