Mortgage rates dip for third consecutive week to average 6.6%

Published On Dec 12, 2024, 12:00 PM

Mortgage rates have declined for the third consecutive week, now averaging 6.6% for 30-year loans, slightly down from 6.69%. This decline is attributed to economic data supporting expectations for an interest rate cut by the Federal Reserve in the near future. The reduction in rates has revitalized refinancing activities but home purchasing applications have dipped slightly. Despite positive trends in mortgage rates and consumer income, challenges related to affordability in the housing market persist.

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Stock Forecasts

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Positive

A continuous decline in mortgage rates typically encourages homebuying and refinancing, which could lead to increased market activity in real estate. As rates drop and affordability improves, companies in the real estate sector could see benefits. However, ongoing affordability issues may temper this growth. Investors should look to real estate investment trusts (REITs) or home construction stocks as potential beneficiaries of this trend.

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