U.S. mortgage rates are tumbling even after the Federal Reserve hiked its benchmark interest rate by 75 basis points last week.
In fact, the average rate on a 30-year fixed mortgage has dipped below 5% for the first time since early April, a new report shows.
This is still significantly higher than last year — and the combination of high prices and interest rates is “driving a reset in fundamentals,” says George Ratiu, senior economist with Realtor.com.
“With borrowing costs setting an affordability ceiling for many buyers, home sales are dropping,” says Ratiu.
“In addition, as many homeowners rushed into summer ready to list their property and capture the equity brought about by record-high prices, inventory has improved. This brought a welcome sign in this year’s real estate markets — price cuts.” READ MORE...
