US Mortgage Rates Near Three-Month Low in Boost to Demand
US mortgage rates declined last week to an almost three-month low, sparking lending activity for home refinancing and purchases in a welcome sign for the struggling housing market. Most lenders have reduced their interest rates due to rising bond yields, which has increased borrowing costs for consumers. The decline in mortgage rates is also expected to boost demand for homes, particularly among first-time buyers who are hesitant to enter the market due to high prices.
- This sudden increase in lending activity could lead to a surge in home sales and potentially alleviate pressure on housing inventory.
- Will this boost in demand be enough to stabilize housing prices, or will it simply push them even higher?