The market had become all but impenetrable after mortgage rates went from historic lows in 2020 to their highest levels in a generation last year.
“And I think if we even go down to 5.9%, that would be really psychologically impactful to the housing market.
The current 6.2% mortgage rate average is, of course, preferable to last year’s peak of 7.8% — a difference that could translate to hundreds of dollars in monthly payments.
As my colleague Samantha Delouya wrote this week, a drop in mortgage rates could be a double-edged sword.
“A further drop in mortgage rates could bring a surge of demand that makes it tougher to actually buy a house.”
Persons:
” Daniel Alpert, Alpert, “, ” Daryl Fairweather, Samantha Delouya, ”, Greg McBride
Organizations:
New, New York CNN, Federal Reserve, Westwood Capital, Fed, Bankrate
Locations:
New York