Mortgage Rates Dip Below 7% as Bond Traders Calm
Key Points:
* Mortgage rates declined for the first time in six weeks, falling below 7%.
* The average 30-year fixed-rate mortgage rate is now 6.96%.
* Bond traders are less anxious about President Trump's economic policies.
* Applications for new home purchases increased, while refinancing applications decreased.
* Rates around 7% pose a心理障碍, slowing both purchases and refinances.
* Mortgage rates remain elevated compared to mid-2024.
* Fannie Mae forecasts mortgage rates ending the year at 6.5%.
* High rates keep existing home sales near 30-year lows due to affordability challenges and the "lock-in effect."