A standard 30-year mortgage dropped to an average of 6.47%, down from 6.73%
Transcript:
CONWAY GITTENS: Here’s what we’re watching on TheStreet today.
Investors are trying to figure out what’s next after the S&P 500 pretty much regained all of the losses from this tumultuous week. Wall Street is looking ahead to fresh clues on the important U.S. consumer. Retail sales are due in the coming week, and we’ll get quarterly results from Walmart and Home Depot. In addition, there will also be fresh inflation data to look at.
There’s been one upside to the market’s recent swoon… interest rates have fallen and taken mortgage costs down with them. According to Freddie Mac, the interest rate on a traditional 30-year-fixed mortgage dropped to a 15-month low of 6.47 percent as of August 8th from 6.73 percent the prior week. That drop was the biggest all year.
The cost of a home loan has been on a steady decline since hitting a 2024 peak of 7.22 percent – back in May. According to Redfin, that has increased purchasing power by roughly $30,000 in a market where the median sales price is at an all-time high.
But the good news is not just for home buyers. Freddie Mac’s chief economist said “This drop in rates is already providing some existing homeowners the opportunity to refinance, with the refinance share of mortgage applications reaching nearly 42 percent, the highest since March 2022.”
And that’s not all. Lower borrowing rates are enticing some homeowners to finally put out that for-sale sign. Total listings are up from a year ago, which could lead to a moderation in price hikes, especially for that first-time home buyer already suffering from sticker shock.
That’ll do it for your Daily Briefing. From the New York Stock Exchange, I’m Conway Gittens with TheStreet.
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