House buyers get more relief from high mortgage rates, but not for any reasons that anyone hopes.
The average mortgage rate for 30 years decreased to 6.63 % for the week until Wednesday, from 6.76 % in the previous week, According to Freddy Mac data. The last decrease came after President Donald Trump implemented a comprehensive tariff on the goods imported from Canada, Mexico, China and the markets, to digest a series of increasing economic data that sparked the sale and sparked new concerns about a possible stagnation in the United States.
Mortgage rates decreased for 15 years to 5.79 %, from 5.94 %.
Although economic uncertainty, price decreased during the past week has stimulated a rise in mortgage requests for home purchase and re -financing. Re -financing requests increased by 37 % to Friday, compared to a previous week, according to the Mortgage Banking Association, while purchase requests increased by 9 %.
“The decrease in price rates increases the power of the purchase of potential home buyers and must provide a strong incentive to achieve a step,” Sam Khatter, the chief economist in Freddy Mac, said in a statement.
Real estate mortgage rates move largely on expectations about the future interest rate policy in the future. After the tariff entered on Tuesday after several economic reports, weaker than expected, traders began anxiety of potential stagnation and pricing in additional price cuts later this year.
The last federal reserve mice in late 2024 amid signs that inflation was cooling, but the customs tariff may hold that image when the Federal Reserve decides to cut it again. Definitions of prices can also increase with consumer spending, and a recipe for inflation.
Read more: Mortgage rates and re -financing today
The recession began to increase this week after the GDP model in Atlanta Federal Reserve estimated that GDP will decrease by 2.8 % in this quarter, and growth in the American manufacturing sector decreased again. The employment of the private sector also slowed last month to the lowest rate since July, according to the ADP salary provider.
In the midst of the increasing economic news, the treasury revenues decreased for 10 years, which follow the mortgage rates closely, to 4.16 % this week, decreased from the highest level in late February 4.4 %. They have risen somewhat in recent days after the data showed better growth in the services sector and Trump has delayed some of the auto tariffs and its weight exemptions for other commodities. They are now about 4.3 %.
The February job report, which will be issued on Friday, will present another data point on the health of the economy. Economists expect that the American labor market added about 160,000 jobs last month. Low reading can be intensified significantly recession fears, bond yield and mortgage rates further, while renewable concerns about inflation will have an opposite effect.