Mortgage rates in the US fell to the lowest since the middle of February as buyers get some relief during the housing market’s busiest season.
The average for a 30-year, fixed loan was 6.74%, down from 6.88% last week, Freddie Mac said in a statement Thursday.
New listings have been rising, which could motivate more buyers to jump into the market, according to Redfin Corp. But house hunters still face borrowing costs that are hovering near 7% and prices that are holding up in many parts of the US.
“Despite the recent dip, mortgage rates remain high as the market contends with the pressure of sticky inflation,” said Sam Khater, Freddie Mac’s chief economist. “In this environment, there is a good possibility that rates will stay higher for a longer period of time.”
The timing of any possible cuts by the Federal Reserve has become more complicated in recent months as economic data remains strong. In February, a measure of US consumer prices topped forecasts for a second month in a row.
Investors expect the central bank to keep rates steady at its meeting next week and to cut them later in the year, according to Hannah Jones, a senior economic research analyst for Realtor.com. That may complicate purchase decisions for house hunters.
“Spring buyers may see higher mortgage rates, but summer buyers are likely to see higher home prices, and uncertainty around mortgage rates,” Jones said.
This article was provided by Bloomberg News.