US Mortgage Rates Fall To Lowest Levels In 8 Months, Home Buyers Take Advantage Of The Decline, Says Freddie Mac

U.S. mortgage rates have fallen to their lowest levels in nearly eight months, according to Freddie Mac, with buyers looking to take advantage of the decline.

Freddie Mac noted that the 30-year fixed-rate mortgage (FRM) fell to 6.58% as of Thursday, down from 6.63% last week. A year ago, the 30-year FRM averaged 6.49%, according to the government-sponsored enterprise.

“Purchase application activity is improving as borrowers take advantage of the decline in mortgage rates,” said Freddie Mac’s chief economist, Sam Khater.

The firm said that based on its latest Primary Mortgage Market Survey, the 15-year FRM is now down to 5.71%, from 5.75% last week. A year ago at this time, the 15-year FRM averaged 5.66%.

On Monday, data from Bank of America showed that the refinancing rate for a 30-year FRM is now down to 6.625% for a current loan balance of $200,000, hitting its lowest levels since March.

In July, Warren Buffett-led Berkshire Hathaway Inc.’s (BRK-A) (BRK-B) HomeServices predicted a softening in the housing market. The firm noted that despite the expected softening, home prices are unlikely to fall dramatically. “Instead, they expect prices to continue rising—just at a slower pace. Slightly lower rates might encourage buyers to act, especially if more sellers list homes to beat any potential price correction. That could increase inventory and put downward pressure on prices,” it said in a note.

Meanwhile, U.S. equities declined in Thursday’s midday session. At the time of writing, the SPDR S&P 500 ETF (SPY), which tracks the S&P 500 index, was down 0.25%, while the Invesco QQQ Trust (QQQ) fell 0.23%. Retail sentiment around the S&P 500 ETF on Stocktwits was in the ‘neutral’ territory.

Also See: PPI Report: Wholesale Inflation In July Comes In Hotter Than Expected

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