In a recent interview, U.S. Treasury Secretary Scott Bescent emphasized President Trump’s focus on discussions with Vladimir Putin, updates on US-China trade negotiations, and solutions to the housing affordability crisis.
Freddie Mac shared some important news on Thursday.
The latest research from Freddie Mac revealed that the average rate for 30-year fixed mortgages dropped to 6.58%, down from 6.63% the previous week.
For context, this rate was 6.49% a year ago.
Sam Khater, Chief Economist at Freddie Mac, noted, “As mortgage rates decline, we’ve seen an uptick in purchasing applications.”
Bescent from the Treasury Department stated that addressing the housing affordability crisis will be a significant focus this fall.
On October 24, 2024, the average rate for a 30-year fixed mortgage was recorded at 6.54%.
Meanwhile, 15-year fixed mortgage rates decreased to 5.71%, down from 5.75% the prior week. A year ago, this rate averaged 5.66%.
The U.S. is still grappling with a housing affordability crisis, which appears to be worsening due to soaring home prices and rising interest rates, as highlighted in an annual report from Harvard University’s Center for Housing Research (JCHS).
Additionally, homeowners and landlords are faced with increasing premiums and property taxes, leading to more individuals feeling the strain of excessive rent. This has reportedly contributed to a rapid rise in homelessness.
The housing crisis worsens, with 47 major metro areas requiring home buyers to allocate over 30% of their income to housing.
Secretary of the Treasury Scott Bescent reiterated that tackling the housing affordability issue is one of his top priorities.
“We’re really going to confront this housing affordability crisis. It’s one of my big projects this fall,” Bescent conveyed during his interview with Fox Business’ Maria Bartiromo.
Historically, real estate transactions peak between May and August, with June being particularly busy. However, this summer saw relatively “slower” activity in both existing and new homes, as noted by Joel Burner, a senior economist at Realtor.com.
Some potential buyers, previously held back by high financing costs, saw a glimmer of hope last week. But Burner cautioned that it may take time before more people re-enter the market.
