Due to the Federal Reserve's (Fed) interest rate cuts, the average mortgage rate in the United States has fallen to its lowest level in two years.
According to Freddie Mac, a U.S. government-sponsored mortgage company, the average rate for a 30-year fixed-rate mortgage in the U.S. was 6.08% as of the 26th (local time), marking the lowest level in two years since September 15, 2022 (6.02%).
The entry of the U.S. into an interest rate cut cycle has influenced the decline in mortgage rates. On the 18th, the Fed executed a 'big cut,' lowering the benchmark interest rate by 0.50 percentage points from 5.25-5.50% to 4.75-5.00%, and also hinted at the possibility of further rate cuts.
As a result, there is growing expectation that the U.S. housing market, which had been frozen due to high interest rates, will gradually regain momentum. Bloomberg reported, "Weekly home purchase applications have been increasing over the past few weeks, and more homeowners are refinancing their mortgages."
Sam Carter, Chief Economist at Freddie Mac, said, "As interest rates continue to decline, refinancing at lower rates is increasing," adding, "Prospective homebuyers are waiting to see if economic indicators in the coming weeks will lead to further rate decreases."
© The Asia Business Daily(www.asiae.co.kr). All rights reserved.
