Mortgage rates fall for second straight week to 7.24% according to Freddie Mac
Mortgage rates fell for a second straight week.
The short version
- The average 30-year fixed rate hit 7.24%.
- Rates dropped from 7.4% recorded two weeks ago.
- Higher borrowing costs add thousands to annual home payments.
- Buyers face steep prices and locked-in housing markets.
Mortgage rates fell for a second consecutive week, offering a slight breather to home buyers even as borrowing costs remain stubbornly high. Freddie Mac, the government-backed home loan company, reported that the average rate on a 30-year fixed Mortgage stands at 7.24%, marking a decline from 7.4% two weeks earlier, according to ABC News.
The conflict triggered an oil supply shortage that drove up energy and grocery prices, pushing annual inflation to 3.7% in September. That inflation surge has eaten away at the value of long-term bonds, forcing yields up and dragging Mortgage rates along with them.
Federal Reserve Chair Kevin Warsh acknowledged the tighter financial conditions during a press conference in Washington, D.C., on Wednesday, noting that conditions have tightened for households and businesses much as the central bank expected. On Wednesday, the Fed opted to leave benchmark rates unchanged while markets pencil in an 85% chance of another rate hike in December.
For anyone shopping for a home or considering a move, those elevated rates continue to keep monthly payments steep and sideline buyers waiting for relief.
