New York: According to Mortgage News Daily, the average rate for a 30-year fixed mortgage fell to 6.57% on Monday, down from 6.76% on Friday and a recent high of 7.05% on Wednesday.
The decline in mortgage rates is linked to the decline in the yield on the 10-year Treasury note, which hit a one-month low due to the collapse of Silicon Valley Bank and Signature Bank, which caused a ripple effect across the banking sector.
For a buyer interested in a $500,000 home with a 20% down payment on a 30-year fixed mortgage, the monthly payment is now $128 less than it was last week. However, it is still higher than it was in January.
This drop in mortgage rates could potentially lead to increased home sales in the spring housing market, but agents and builders reported a significant slowdown in February as interest rates rose.
The Federal Reserve’s monetary policy and thoughts on inflation also have a big impact on mortgage rates.
Recently, Federal Reserve Chairman Jerome Powell stated that the latest economic data showed stronger-than-expected results, and the Fed would be prepared to increase the pace of rate hikes if the data indicated that faster tightening was needed.
With inflation still an issue, the impact of consumer fears may continue to drive market behavior.