“U.S. Mortgage Rates Fall, Signs of Housing Market Recovery… New York Manhattan Rents Are also Falling”

“U.S. Mortgage Rates Fall, Signs of Housing Market Recovery… New York Manhattan Rents Are also Falling”
While the U.S. housing market is getting hot attention, news has emerged that mortgage rates have fallen to 6.95 percent, mainly for 30-year fixed mortgages. This is the first time since the summer that they have fallen below 7 percent.
According to data released by Freddie Mac, mortgage rates fell to 6.95 percent from 7.03 percent last week. This is the first time since August that they have fallen to this level. The mortgage rate a year ago was 6.31 percent.
“With slowing inflation and the Federal Reserve expected to lower interest rates next year, the housing market is likely to recover gradually in the new year,” said Sam Carter, chief economist at Freddie Mac.
Mortgage rates in the U.S. tend to follow 10-year U.S. Treasury yields, which have fallen below 4% for the first time since August, hitting 3.91%.
As mortgage rates have fallen, the number of mortgage applications has also increased for six consecutive weeks, showing signs of a recovery in demand. However, housing prices are not expected to fall significantly, and some observers say that falling interest rates could further drive rising housing prices.
In the housing market, buying intentions are increasing, but housing prices continue to rise due to the shortage of homes for sale. In fact, according to the Mortgage Banking Association (MBA), the number of home purchases has decreased by 18% year-on-year.
Meanwhile, rents in Manhattan, New York, fell for the first time in more than two years in November. Median rents in the area fell 4.6% month-on-month and 2.3% year-on-year, the report showed.
In some areas, including Manhattan, apartment construction is active, and rents are falling due to falling mortgage rates and measures to curb inflation.
See Korea Town Daily