New Low: 30-Year Fixed Mortgage Rates Drop to Mid-March Level Amid Housing Market Struggles

New York, New York, USA United States of America
Average interest rate on 30-year fixed-rate mortgage drops to mid-March level
Decline in mortgage rates may continue if Federal Reserve cuts rates later this year
Homeowners reluctant to sell due to locked in lower rates making buying another house expensive
Housing market confronted with challenges since the pandemic including historic lows, mortgage rate soars, escalating demand for homes and jump in prices making owning a home unaffordable for many
Housing market continues to struggle with record low sales and tight inventory
Mortgage applications jumped nearly 4% with a 15% increase in refinancing and a 37% yearly increase
New listings are up 6.4% compared to last year and the total number of listings is near its highest point in close to four years
Typical monthly housing payment was roughly $2,700 in July 14 falling from April's all-time high
Volume of existing-home sales reached a record low last year and remained tight due to inventory constraints
New Low: 30-Year Fixed Mortgage Rates Drop to Mid-March Level Amid Housing Market Struggles

In a recent development, the average interest rate on the popular U.S. 30-year fixed-rate mortgage has dropped to its lowest level since mid-March this week, according to Freddie Mac. This decline in mortgage rates comes as the housing market continues to struggle and remains one of the sectors most affected by interest rate increases from the Federal Reserve since early 2022. The volume of existing-home sales reached a record low in 1995 last year, and home sales remained tight due to pinched inventory. Many homeowners are reluctant to sell because their existing home loans are still locked in at much lower rates, making buying another house a more expensive proposition with added costs.

The decline in mortgage rates may continue if the Federal Reserve cuts rates as expected later this year. However, economists note that even with declining mortgage rates, purchase application demand remains roughly 5% below where it was in the spring. This apparent paradox is driven by buyers making sure that rates don't decline further before they decide to purchase.

Meanwhile, homeowners have been taking advantage of the lower borrowing costs and refinancing their mortgages in large numbers. The Mortgage Bankers Association (MBA) reported a 15% increase in refinancing for the week ending July 12 and a 37% yearly increase. Overall, mortgage applications jumped nearly 4%.

The housing market has been confronted with numerous challenges since the pandemic. After hitting historic lows, mortgage rates soared as the Fed moved to raise borrowing costs. Meanwhile, low rates helped escalate demand for homes and contributed to a jump in prices, making owning a home unaffordable for many people.

However, there are signs that prices are coming down. The typical monthly housing payment was roughly $2,700 in the four weeks ending July 14, falling from April's all-time high. New listings are also up 6.4% compared to last year and the total number of listings is near its highest point in close to four years.

Experts predict that mortgage rates could drop further if the Federal Reserve cuts rates as expected later this year, but it depends on various factors such as inflation, bond yields, and labor market conditions. Some experts believe that a significant drop in mortgage rates could occur if there is a decline in the benchmark rate by the Federal Reserve or if investors in the mortgage-backed securities (MBS) market significantly affect mortgage interest rates for consumers.


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Confidence

96%

Doubts
  • Is the decline in mortgage rates a temporary trend or will it continue?
  • What are the exact reasons for homeowners reluctance to sell?

Sources

97%

The overall score is a weighted number that takes into account conflict of interest, bias, deception and other practices that undermine the credibility of the source. It is calculated as:
(Site Conflicts Of Interest + Author Conflicts Of Interest) / 2.0 * 0.2 + ArticleBiasScore * 0.20 + UniquePointsScore * 0.05 + DeceptionScore * 0.20 + ReadabilityScore * 0.05 + FallacyScore * 0.20

A score that takes into consideration the content for flow, interruptions with ads, and overt search engine optimization techniques that makes the content hard to understand

Key U.S. mortgage rate drops to lowest since March, Freddie Mac says

Yahoo Finance Makailah Gause Friday, 19 July 2024 10:57
  • Unique Points
    • The average interest rate on the popular U.S. 30-year fixed-rate mortgage dropped to its lowest level since mid-March this week.
    • The housing market has been struggling to find its footing and is one of the sectors most affected by interest rate increases from the Fed since early 2022.
    • Existing-home sales reached their lowest volume in 1995 in 2023 and home sales remained tight due to pinched inventory.
    • Many homeowners are reluctant to sell because their existing home loans are still locked in at much lower rates, and buying another house likely means a higher rate and added cost.
  • Accuracy
    • The 30-year fixed-rate mortgage averaged 6.77% during the week ending July 18.
    • Freddie Mac reported that the average rate was down from 6.89% in the prior week.
    • Experts predict mortgage rates could drop to 6% soon.
  • Deception (100%)
    None Found At Time Of Publication
  • Fallacies (95%)
    The author makes several statements that are not fallacious. However, there is an instance of an appeal to authority when the author quotes Freddie Mac's chief economist stating that 'demand weakens, and the apparent paradox is driven by buyers making sure rates don't decline further before they decide to purchase.' This statement implies that this behavior is a universal truth and not just a trend observed in this particular situation. However, it does not significantly impact the overall quality of the article.
    • 'demand weakens, and the apparent paradox is driven by buyers making sure rates don’t decline further before they decide to purchase,'
  • Bias (100%)
    None Found At Time Of Publication
  • Site Conflicts Of Interest (100%)
    None Found At Time Of Publication
  • Author Conflicts Of Interest (100%)
    None Found At Time Of Publication

84%

The overall score is a weighted number that takes into account conflict of interest, bias, deception and other practices that undermine the credibility of the source. It is calculated as:
(Site Conflicts Of Interest + Author Conflicts Of Interest) / 2.0 * 0.2 + ArticleBiasScore * 0.20 + UniquePointsScore * 0.05 + DeceptionScore * 0.20 + ReadabilityScore * 0.05 + FallacyScore * 0.20

A score that takes into consideration the content for flow, interruptions with ads, and overt search engine optimization techniques that makes the content hard to understand

When will mortgage rates drop to 6%? Here's what some experts predict

CBS News Site: https://www.cbsnews.com/articles/about-us/ Dori Zinn Friday, 19 July 2024 10:57
  • Unique Points
    • Experts predict mortgage rates could drop to 6% soon.
    • A drop in the benchmark rate by the Federal Reserve could lead to a significant drop in mortgage rates.
    • Investors in the mortgage-backed securities (MBS) market can significantly affect mortgage interest rates for consumers.
  • Accuracy
    • The average mortgage rate is now below 7% for 30-year fixed-rate loans.
    • Existing-home sales reached their lowest volume in 1995 in 2023 and home sales remained tight due to pinched inventory.
    • Overall housing starts rose 3.0% in June, but apartment projects drove this increase, not single-family home construction where starts fell to an eight-month low last month.
  • Deception (30%)
    The article contains editorializing and selective reporting. The author states 'Many signs point to a Fed rate cut in the near future' without providing any evidence or citing sources for this claim. Additionally, the author quotes experts predicting a drop in mortgage rates to 6%, but does not disclose whether these experts have provided any peer-reviewed studies or data to support their predictions.
    • Experts say we could be on the horizon of a drop to 6%
    • Many signs point to a Fed rate cut in the near future
  • Fallacies (100%)
    None Found At Time Of Publication
  • Bias (100%)
    None Found At Time Of Publication
  • Site Conflicts Of Interest (100%)
    None Found At Time Of Publication
  • Author Conflicts Of Interest (100%)
    None Found At Time Of Publication

97%

The overall score is a weighted number that takes into account conflict of interest, bias, deception and other practices that undermine the credibility of the source. It is calculated as:
(Site Conflicts Of Interest + Author Conflicts Of Interest) / 2.0 * 0.2 + ArticleBiasScore * 0.20 + UniquePointsScore * 0.05 + DeceptionScore * 0.20 + ReadabilityScore * 0.05 + FallacyScore * 0.20

A score that takes into consideration the content for flow, interruptions with ads, and overt search engine optimization techniques that makes the content hard to understand

Homeowners Refinance Their Mortgages As Rates Drop

Newsweek LLC Omar Mohammed Wednesday, 17 July 2024 20:53
  • Unique Points
    • Homeowners moved to refinance their mortgages for the week ending July 12, as interest rates for home loans fell.
    • , The Refinance Index from the MBA showed that refinancing shot up 15 percent for the week and on a yearly basis, soared 37 percent.
    • Overall, mortgage applications jumped nearly 4 percent.
  • Accuracy
    • The Refinance Index from the MBA showed that refinancing shot up 15 percent for the week and on a yearly basis, soared 37 percent.
    • Overall mortgage applications jumped nearly 4 percent.
    • In June, inflation fell for the first time since the pandemic, bolstering the hope that the Fed may begin to slash rates as soon as September.
    • Joel Kan, MBA’s deputy chief economist, said mortgage rates declined last week due to recent signs of cooling inflation and increased likelihood of Fed rate cuts later this year.
    • The jump in home loan applications was helped by an increase in Federal Housing Administration (FHA) and Veterans Affairs (VA) supported mortgages.
  • Deception (100%)
    None Found At Time Of Publication
  • Fallacies (95%)
    The article contains some instances of appeals to authority and inflammatory rhetoric, but no formal or blatant logical fallacies were found. The author quotes the Mortgage Bankers Association (MBA) and Joel Kan multiple times to establish their expertise on the topic. Additionally, there are a few instances of emotional language such as 'cooling inflation' and 'escalated demand for homes', but these do not significantly impact the overall argument or logic of the article.
    • ][Mortgage Bankers Association (MBA)] said on Wednesday, as interest rates for home loans fell helping to also bring in new applications as buyers looked to take advantage of cheaper borrowing costs for a house.[/]
    • [Joel Kan, MBA’s deputy chief economist,] said in a statement shared with Newsweek. [He] pointed out that mortgage applications jumped nearly 4 percent.[
    • But there are signs that prices, particularly in Sunbelt parts of the country, are coming down. With interest rates also declining, it could inspire a rebound in the mortgage market.
  • Bias (100%)
    None Found At Time Of Publication
  • Site Conflicts Of Interest (100%)
    None Found At Time Of Publication
  • Author Conflicts Of Interest (100%)
    None Found At Time Of Publication

91%

The overall score is a weighted number that takes into account conflict of interest, bias, deception and other practices that undermine the credibility of the source. It is calculated as:
(Site Conflicts Of Interest + Author Conflicts Of Interest) / 2.0 * 0.2 + ArticleBiasScore * 0.20 + UniquePointsScore * 0.05 + DeceptionScore * 0.20 + ReadabilityScore * 0.05 + FallacyScore * 0.20

A score that takes into consideration the content for flow, interruptions with ads, and overt search engine optimization techniques that makes the content hard to understand

The typical monthly housing payment just fell from an all-time high

Fortune Media Inc. Alena Botros Thursday, 18 July 2024 00:00
  • Unique Points
    • Mortgage rates have fallen to their lowest readings in months, at 6.81% daily and 6.77% weekly.
    • The typical monthly housing payment was roughly $2,700 in the four weeks ending July 14, a decrease from April’s all-time high.
    • New listings are 6.4% higher than last year and the total number of listings is near its highest point in close to four years.
    • More homeowners are selling due to the increase in mortgage rates over the past two years.
  • Accuracy
    • The typical monthly housing payment was roughly $2,700 in the four weeks ending July 14, a decrease from April's all-time high.
  • Deception (70%)
    The article is not highly deceptive, but it does present a misleading narrative by selectively reporting details that support the author's position. The author claims that 'the typical monthly housing payment was roughly $2,700 in the four weeks ending July 14, falling more than $100 from April’s all-time high.' However, they do not disclose that this figure is still higher than it was before the pandemic. This omission leads to a false impression of a significant improvement in housing affordability.
    • The typical monthly housing payment was roughly $2,700 in the four weeks ending July 14, falling more than $100 from April’s all-time high.
  • Fallacies (90%)
    The article contains a few informal fallacies and an example of inflammatory rhetoric. It uses a dichotomous depiction by suggesting that either mortgage rates will drop significantly or they won't, leaving no middle ground. Additionally, the author employs inflammatory language when referring to 'pandemic-era lows' and 'more than two-decade high', creating an emotionally charged atmosphere rather than a neutral reporting tone. No formal fallacies were found.
    • Mortgage rates are hopefully coming back down to earth.
    • Maybe it’s because people are waiting for mortgage rates to fall further. After all, they’re still considerably higher than the pandemic-era lows, even if they’re lower than the more than two-decade high reached in October last year.
  • Bias (100%)
    None Found At Time Of Publication
  • Site Conflicts Of Interest (100%)
    None Found At Time Of Publication
  • Author Conflicts Of Interest (100%)
    None Found At Time Of Publication