The 10-year fixed-rate mortgage (FRM) is currently at a 10-month low of 6.56%, down from 6.58% last week. That could provide a helping hand to homebuyers who have faced elevated rates since 2022.
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“Purchase demand continues to rise on the back of lower rates and solid economic growth,” said Freddie Mac on Thursday. “Though many potential homebuyers still face affordability challenges, consistently lower rates may provide them with the impetus to enter the market.”
Pending Home Sales Drop in July
Pending home sales fell by 0.4% month-over-month in July, higher than the estimate for a 0.1% decline. The Midwest region saw the steepest decline of 4% while the South fared best with a 0.1% drop. While mortgage rates have eased in recent months, they still remain elevated amid housing prices hovering near all-time highs.
“Even with modest improvements in mortgage rates, housing affordability, and inventory, buyers still remain hesitant,” said National Association of Realtors (NAR) Chief Economist Lawrence Yun.
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