Mortgage Rates Fall to 6.44% in August

U.S. mortgage rates have dropped to 6.44%, the lowest since April 2023, marking four consecutive weeks of declines, according to the Mortgage Bankers Association (MBA). Despite the decrease in rates, total mortgage application volume only rose by 0.5%, with purchase applications up 1% but still 9% lower than last year. The decline in rates is attributed to various economic factors, including the weakening job market and expectations of potential Federal Reserve rate cuts in September. While this may signal a renewed interest in home purchases, many prospective buyers are adopting a wait-and-see approach, influenced by high home prices and market conditions. The drop in mortgage rates is also positively impacting mortgage-linked stocks, indicating strong investor sentiment in the sector. Economists predict that mortgage rates could fall below 6% in the coming months, potentially revitalizing the housing market.