When Mortgage Rates Drop, Look For Buyers To Step Up

Mortgage rates continue to move in a narrow range with the average interest rate for the 30-year fixed-rate mortgage declining slightly this week to 6.79 percent, according to Freddie Mac.  This is down from last week’s average of 6.87 percent.  Comparatively, a year ago the rate averaged closer to the bottom of the 6 percent range at 6.35 percent.

“Rates remain elevated near seven percent as markets watch for signs of cooling inflation, hoping that rtes will come down further,” said Sam Khater, Freddie Mac’s chief economist.

Meanwhile, mortgage application activity was muted last week.  The 30-year fixed rate edge lower “but that was not enough to stimulate buyer demand,” said Joel Kan, the Mortgage Bankers Association’s vice president and deputy chief economist.

Locally limited inventory has been driving home sales with multiple offers and offers over list price still occurring on well-priced properties.