Alex Perry of Bloomberg reports that buyers are moving ahead and signing more contracts in October. Perry writes:
Mortgage rates in the US declined, offering a bright spot for would-be homebuyers.
The average for a 30-year fixed loan was 6.81%, down from 6.84% last week, Freddie Mac said in a statement Thursday.
Borrowing costs are much higher than two months ago, when the average on a 30-year mortgage dropped to a low of 6.08%. Higher rates have ramped up affordability pressures, with buyers now paying about $3,916 for monthly mortgage payments on a $600,000 home, up $288 from two months earlier.
Some shoppers are forging ahead. In October, contracts to buy previously owned homes rose to a seven-month high, according to the National Association of Realtors.[…]
Declining yields have come amid “growing certainty over President-elect Trump’s cabinet and policy plans, especially details surrounding his pick for Treasury Secretary in Scott Bessett as well as details on the breadth and depth of tariffs on overseas goods,” said Ralph McLaughlin, senior economist at Realtor.com. “This should continue to put downward pressure on mortgage rates through the first week of December.”
Read more here.
