US Mortgage Rates at 4-Month Lows

The average interest rate for a 30-year mortgage (home loan) in the US dropped to 6.19 percent, taking its decline into its fourth week.

According to data from the Mortgage Bankers Association (MBA), mortgage applications decreased 9 percent in the week ending January 27 compared to the previous week, despite the drop in interest rates.

The average interest rate for a 30-year mortgage in the country fell from 6.2 percent to 6.19 percent.

The average interest rate for 30-year mortgages, which continued its decline into the fourth week, fell to the lowest level since September 2022.

In the same period, the average interest rate for a 15-year mortgage fell from 5.54 percent to 5.5 percent.

IN OCTOBER WAS THE SUMMIT OF 21 YEARS

MBA Vice President Joel Kan noted that mortgage applications have declined despite falling interest rates, saying this is an indicator of the fluctuating course in the housing sector.

Noting that the spread between mortgage rates and the 10-year bond rate has increased abnormally since early 2022, Kan said narrowing this spread is expected to put downward pressure on mortgage rates in the coming months.

The average interest rate for a 30-year mortgage in the US topped 7 percent in October 2022, hitting a 21-year high.

In the country, the tightening of the aggressive monetary policy of the United States Federal Reserve (Fed) in the face of high inflation significantly weakened the real estate market. (AA)