Making Money Charles Payne talks about the resurgence of animal spirits after Trump wins the election.
Long-term mortgage rates have fallen over the past week, reigniting demand for home purchases and breathing new life into a stagnant housing market.
Overall, the number of mortgage applications rose 6.3% from a week ago, driven by an increase in purchase demand of 52% from a year ago, the Mortgage Bankers Association (MBA) said Wednesday.
A “For Sale” sign is posted in front of a home in Miami, Florida, on February 22, 2023. (Photo by Joe Radle/Getty Images/Getty Images)
MBA pointed out that the number of purchase applications increased sharply as mortgage interest rates fell for the first time in two months. Still, interest rates have fallen only slightly, and the affordability crisis continues to have a significant impact on the housing market.
Freddie Mac and Fannie Mae support even larger mortgages in 2025
Freddie Mac's latest Primary Mortgage Market Study, also released Wednesday, found that the average benchmark interest rate 30 year fixed mortgage It fell to 6.81% from 6.84% last week. The average interest rate on a 30-year loan was 7.22% a year ago.
“30-year fixed-rate mortgages fell this week, but not by a large amount,” said Sam Cater, chief economist at Freddie Mac. “Interest rates have been relatively flat for the past few weeks as markets await clarity on concrete economic policy.”
“Demand is sluggish because potential homebuyers are waiting and waiting,” Carter added. “Despite weak sales activity, inventories have improved only marginally and there remains a significant supply shortage.”
Real estate advisor and former Million Dollar Listing New York star Kirsten Jordan looks ahead to the Fed's next interest rate decision and the state of the market under the second Trump administration.
Many buyers and sellers are waiting to see if interest rates will fall further. According to Zillow research, about 80% of mortgage holders currently have interest rates below 5%.
CLICK HERE TO GET FOX BUSINESS ON THE GO
The average interest rate for a 15-year fixed mortgage rose to 6.10% from 6.02% last week. A year ago, interest rates on 15-year fixed bonds averaged 6.56%.
