Mortgage rates stall as home sales remain 'lackluster'
Published On Sep 5, 2024, 8:09 AM
Mortgage rates have held steady this week despite recent fluctuations in the housing market. Currently, the average rate on a 30-year fixed mortgage is at 6.35%, showing no change from the previous week, while a year ago it was notably higher at 7.12%. The demand for home sales remains tepid, largely influenced by buyers and sellers waiting for further drops in rates. Approximately 80% of current mortgage holders enjoy rates below 5%, leading to a saturation in refinancing activity. Meanwhile, the rates for 15-year fixed mortgages slightly declined to 5.47%. Experts attribute this stagnation in home sales and demand to a mix of market uncertainties and existing housing supply challenges.
Stock Forecasts
XHB
Negative
With mortgage rates holding steady and home sales remaining lackluster, the potential for further drops in mortgage rates could entice some buyers back into the market. However, the overall market's cautious sentiment may continue to suppress significant movement in home sales. Investors in real estate-focused stocks or ETFs might face challenges as housing demand feels the pressure of higher borrowing costs and limited inventory.
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