30-Year Mortgage Rate Falls to 6.35%
Published On Aug 29, 2024, 12:05 PM
The average rate on 30-year fixed-rate mortgages in the U.S. has decreased to 6.35% from 6.46% the previous week, marking the lowest level since May 2023. This decline is expected to encourage more buyers and sellers in the housing market, particularly as anticipation grows for interest rate cuts from the Federal Reserve in mid-September. Mortgage rates, although lower than their peak of nearly 7.8% late last year, remain significantly higher compared to three years ago (around 3%). Recent data shows new home sales rose over 10% last month, suggesting some activity in the market despite overall home-price growth expected to slow down due to an increase in housing supply.
Stock Forecasts
XHB
Positive
With mortgage rates falling and the expectation of further decreases due to potential Fed rate cuts, the housing market should see increased activity. Homebuilders and real estate-related stocks stand to benefit.
LOW
Positive
As the affordability of homes improves with lower mortgage rates, shares of companies involved in housing, such as home improvement retailers and construction firms, may also show positive trends.
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