Mortgage rates fall again, but home sales still lag

Published On Sep 19, 2024, 12:01 PM

Mortgage rates have declined again, with the average rate for a 30-year fixed mortgage falling to 6.09% from 6.20%, signaling a slight increase in demand for home purchases and refinancing. However, many potential homebuyers are still hesitant to enter the market, waiting for even lower rates. Recent data confirms that existing home sales have decreased in August compared to the previous month. The drop in mortgage rates follows a recent cut by the Federal Reserve, which has led to expectations of further easing. Despite some increase in demand, overall home sales remain sluggish as about 80% of current mortgage holders have rates below 5%.