Mortgage rates fall a third week in a row as housing market tilts in homebuyers’ favor
Mortgage rates fell again this week amid relentless inflation and persistent doubt around the health of the U.S. economy.
The rate drop — the third in as many weeks — was slight but still meaningful given rising home prices and generally higher borrowing costs.
America’s most popular home loan — the 30-year fixed mortgage — is still significantly more expensive than it was last year.
That’s eating away at consumers’ buying power and beginning to stifle demand.
“Heading into the summer, the potential homebuyer pool has shrunk, supply is on the rise and the housing market is normalizing,” Sam Khater, Freddie Mac’s chief economist, said Thursday in the housing giant’s weekly rate update.
“This is welcome news following unprecedented market tightness over the last couple years.”