Mortgage rates tick lower, hover near 7%
Published On Jan 30, 2025, 12:27 PM
Mortgage rates have decreased slightly, with the average rate on a 30-year fixed mortgage now at 6.95%, down from 6.96% last week. The 15-year fixed mortgage rate also saw a decline to 6.12%. Despite these slight dips, mortgage rates remain high, contributing to ongoing affordability challenges in the housing market, keeping many potential buyers sidelined.
Stock Forecasts
LEN
Positive
With the slight reduction in mortgage rates, there may be a potential increase in home buying activity as affordability slightly improves, although hurdles remain due to high overall rates. This can positively impact the homebuilder stocks and related real estate sectors.
HD
Positive
As mortgage affordability improves even marginally, home improvement and construction-related companies might see a boost as new buyers and homeowners look to invest in renovations. This may lead to a positive outlook for companies related to home improvement products and services.
XHB
Negative
Higher mortgage rates staying close to the 7% mark could deter potential buyers, leading to a more extended period of subdued demand in the housing market and affecting home sales negatively. This may be reflected in the performance of real estate ETFs.
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