

# U.S. Mortgage Rates Fall Amid Lower Inflation Expectations

U.S. **mortgage rates** have seen a decrease for the third consecutive week, with the 30-year fixed-rate mortgage averaging 7.44%, down from the previous week's 7.5% (1,4). This drop in mortgage rates is attributed to receding inflationary pressures and growing confidence that the **Federal Reserve** may not raise rates further (2,3).

> "The decline in mortgage rates is due to receding inflationary pressures," said Sam Khater, Freddie Mac's Chief Economist (4).

The yield on the 10-year Treasury note, which influences mortgage rates, has dropped below 4.50% (2). This decrease in mortgage rates has led to an increase in applications to purchase or refinance a home, with a reported increase of 2.8% from the previous week, marking the highest in five weeks (3).

However, despite the decrease in mortgage rates, the housing market remains challenging for many potential homebuyers. Borrowing costs for mortgages are at two-decade highs, and home prices continue to rise due to limited housing supply (5). 

> "While lower mortgage rates may attract more potential homebuyers into the market, limited inventory remains a constraint," said Lisa Sturtevant, chief economist for Bright MLS (3).

Lawrence Yun, chief economist for the National Association of Realtors, believes that mortgage rates have likely peaked and expects them to drop to between 6% and 7% by the spring buying season (3). This prediction is supported by October's inflation figures, which showed no movement from the previous month, with prices remaining the same as in September (4).

> "Interest rate rises should be over, and the Fed will have to consider cutting interest rates seriously," said Lawrence Yun (1).

However, not all industry experts share Yun's optimism. Some analysts believe that even though mortgage rates could decrease further, rates will remain above the previous decade's median of about 3.5% (2). 

The Federal Reserve's actions and future decisions will continue to play a significant role in the trajectory of mortgage rates. Recent data suggests that the Fed's restrictive monetary policy is passing through to the economy, making a rate hike less likely (3). 

As a result of these developments, potential homebuyers and investors are closely watching the Federal Reserve's next moves. The outcome could significantly impact the U.S. housing market and broader economy. 

In conclusion, the recent decrease in U.S. mortgage rates provides a glimmer of hope for potential homebuyers. However, the housing market remains challenging due to high borrowing costs and limited housing supply. The future trajectory of mortgage rates will largely depend on the Federal Reserve's actions and the state of the U.S. economy.

<h1>U.S. Mortgage Rates Fall Amid Lower Inflation Expectations</h1>
U.S. mortgage rates have seen a decrease for the third consecutive week, with the 30-year fixed-rate mortgage averaging 7.44%, down from the previous week's 7.5% (1,4). This drop in mortgage rates is attributed to receding inflationary pressures and growing confidence that the Federal Reserve may not raise rates further (2,3).
<blockquote>
"The decline in mortgage rates is due to receding inflationary pressures," said Sam Khater, Freddie Mac's Chief Economist (4).
</blockquote>
The yield on the 10-year Treasury note, which influences mortgage rates, has dropped below 4.50% (2). This decrease in mortgage rates has led to an increase in applications to purchase or refinance a home, with a reported increase of 2.8% from the previous week, marking the highest in five weeks (3).
However, despite the decrease in mortgage rates, the housing market remains challenging for many potential homebuyers. Borrowing costs for mortgages are at two-decade highs, and home prices continue to rise due to limited housing supply (5).
<blockquote>
"While lower mortgage rates may attract more potential homebuyers into the market, limited inventory remains a constraint," said Lisa Sturtevant, chief economist for Bright MLS (3).
</blockquote>
Lawrence Yun, chief economist for the National Association of Realtors, believes that mortgage rates have likely peaked and expects them to drop to between 6% and 7% by the spring buying season (3). This prediction is supported by October's inflation figures, which showed no movement from the previous month, with prices remaining the same as in September (4).
<blockquote>
"Interest rate rises should be over, and the Fed will have to consider cutting interest rates seriously," said Lawrence Yun (1).
</blockquote>
However, not all industry experts share Yun's optimism. Some analysts believe that even though mortgage rates could decrease further, rates will remain above the previous decade's median of about 3.5% (2).
The Federal Reserve's actions and future decisions will continue to play a significant role in the trajectory of mortgage rates. Recent data suggests that the Fed's restrictive monetary policy is passing through to the economy, making a rate hike less likely (3).
As a result of these developments, potential homebuyers and investors are closely watching the Federal Reserve's next moves. The outcome could significantly impact the U.S. housing market and broader economy.
In conclusion, the recent decrease in U.S. mortgage rates provides a glimmer of hope for potential homebuyers. However, the housing market remains challenging due to high borrowing costs and limited housing supply. The future trajectory of mortgage rates will largely depend on the Federal Reserve's actions and the state of the U.S. economy.

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Mortgage rates dip further and could be the break homebuyers need: Freddie Mac

Mortgage rates decline for 3rd consecutive week

Mortgage Rates

U.S. Housing Market

Federal Reserve

Inflation

Lawrence Yun

Sam Khater

Freddie Mac

National Association of Realtors

U.S. mortgage rates have fallen for the third consecutive week, with the 30-year fixed-rate mortgage averaging 7.44%. The decrease is attributed to receding inflationary pressures and expectations of a halt in Federal Reserve rate hikes.

U.S. Mortgage Rates Fall Amid Lower Inflation Expectations

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