If Higher Rates Sank U.S. Home Sales, Will Lower Ones Save Them?
- Borrowing costs at a three-month low are a test for demand
- Average rate for 30-year mortgages fell this week to 4.63%
A for sale sign stands outside of a home in Princeton, Illinois.
Photographer: Daniel AckerThis article is for subscribers only.
Economists, for the most part, blame the U.S housing slowdown on this year’s jump in mortgage rates. Now that borrowing costs have slipped back to a three-month low, will sales rebound? We’re about to find out.
The average rate for 30-year fixed mortgages fell to 4.63 percent in the week through Thursday, the lowest since early September, according to a Freddie Mac survey. It’s down from 4.94 percent a month ago, when rates hit a seven-year high.