US mortgage rates at 6-week low

According to Mortgage Banks Association (MBA) data, mortgage applications increased by 2.9 percent in the week ending March 24 compared to the previous week.

The average interest rate for 30-year mortgages in the country fell from 6.48 percent to 6.45 percent, falling to a 6-week low.

In the same period, the average interest rate for a 15-year mortgage fell from 6.02 percent to 5.84 percent.

MBA Vice President Joel Kan, in his assessment on the subject, stated that while the decline in mortgage interest rates took the third week, applications increased.

Housing price growth has slowed

Stating that the increase in housing prices has slowed down significantly in many parts of the country, Kan noted that this helps to increase the purchasing power of buyers.

The average interest rate for a 30-year mortgage in the US exceeded 7 percent in October 2022, reaching a 21-year high.

In the country, the tightening of the US Federal Reserve’s (Fed) aggressive monetary policy against high inflation significantly weakened the housing market.