Mortgage rates in the United States have fallen for the fourth consecutive week, reaching an average of 7.29% for a 30-year fixed-rate mortgage as of November 22, 2023. Despite the recent decrease, rates remain high compared to the previous year and have significantly impacted home sales and buyer behavior. The decline in rates is attributed to mixed economic data and high financing costs, leading to larger down payments by homebuyers.
- Recent Decline in Mortgage Rates: Mortgage rates have dropped for four straight weeks, with the 30-year fixed-rate mortgage averaging 7.29%.
- High Rates Impacting Home Sales: The high mortgage rates have led to a decline in home sales, reaching a thirteen-year low, as potential buyers wait for lower rates and more inventory.
- Variability in Rates: The average mortgage rate is based on applications from lenders nationwide, primarily involving borrowers with a 20% down payment and excellent credit.
- Economic Data Influence: Mixed economic data, including construction strength and declining existing home sales, have contributed to the recent easing of mortgage rates.
- Buyer Responses and Market Outlook: Homebuyers are responding to higher financing costs by making larger down payments. Even with the rate decrease, only the most motivated buyers are likely to re-enter the market, with the potential for more household interest if rates continue to decline.