Rate Decrease and Its Implications
The average rate on a 30-year mortgage in the fell to 6.85%, marking the fifth consecutive week of declines and reaching the lowest level since late December.
This decrease is seen as a positive sign for prospective homebuyers and sellers, especially as the spring homebuying season approaches, potentially easing the financial burden for first-time buyers.
Market Reactions and Future Outlook
The reduction in mortgage rates is attributed to a decline in the 10-year Treasury yield, influenced by various economic factors including the ’s interest rate policy decisions.
Despite the recent rate drop, the housing market continues to face challenges with rising home prices and a significant slump in the sales of previously occupied U.S. homes, which fell to their lowest level in nearly 30 years last year.