Mortgage rates land below 7%

It is the first time in four weeks that rates have dropped below the marker

Mortgage rates land below 7%

Mortgage rates have fallen below 7% for the first time in four weeks.

According to new data from the Mortgage Bankers Association (MBA), the 30-year fixed mortgage rate experienced its largest reduction in almost three months, decreasing by 18 basis points to settle at 6.84% for the week ending March 8.

This means mortgage rates have now slightly retreated from their peak in October, when they were at the highest since 2000. However, they are still more than double the historically low levels observed in 2021.

Along with the slight decrease in rates, MBA reported a 7.1% rise in its overall index for mortgage applications.

The index showed that applications for home purchase were up 4.7% to reach a four-week peak of 147.7. Meanwhile, the refinancing segment experienced a 12.2% increase, representing the most significant increase in the index for the past five weeks.

Holden Lewis, a home and mortgage specialist at NerdWallet, offered insight on the factors influencing the recent rate reductions.

“Mortgage rates fell for the second week in a row as the market reacted to signs that job growth is slowing a little bit,” Lewis said in an emailed statement. “The week’s rates were collected before the release of the February consumer price index, which indicated that inflation has maintained its vigor past its desired expiration date.”

What are your thoughts on this story? Feel free to comment below.