In hopeful sign, US mortgage rates at lowest level since September

Robert Besser
24 Jan 2023, 06:28 GMT+10

Data from the Mortgage Bankers Association released this week showed that the average interest rate on leading US home loans dropped to its lowest level since September
For the week ending on 31st January, the average contract rate on a 30-year fixed-rate mortgage fell by 6.23 percent to 19 basis points
The yield on the 10-year note acts as a benchmark for mortgage rates

WASHINGTON D.C.: Data from the Mortgage Bankers Association released this week showed that the average interest rate on leading US home loans dropped to its lowest level since September, indicating that inflation has past its peak as Treasury yields decrease.

For the week ending on 31st January, the average contract rate on a 30-year fixed-rate mortgage fell by 6.23 percent to 19 basis points, as financial markets have been encouraged by recent data showing that inflation is slowing, which will enable the Federal Reserve to curb its interest rate hikes.

The yield on the 10-year note acts as a benchmark for mortgage rates.

As the Federal Reserve Bank raised its benchmark policy rate in 2022 at the most rapid rate in 40 years, mortgage rates surged to more than 7 percent in October.

Lower mortgage rates have attracted more buyers, with the Mortgage Bankers Association's Market Composite Index, a measure of mortgage loan application volume, rising 27.9 percent from last week, the highest increase since March 2020.

After lifting its policy rate by 50 basis points in December, the US central bank is expected to slow its pace of rate hikes to a quarter percentage point increase when it next meets on 31st January and 1st February.

Watch latest videos

News RELEASES

Publish news of your business, community or sports group, personnel appointments, major event and more by submitting a news release to Cape Town Express.

More Information

16 ℃

Fair in Cape Town

International

Section

Senator Josh Hawley will introduce law to ban TikTok throughout US

WASHINGTON D.C.: Republican US Senator Josh Hawley has said that he plans to introduce a bill to ban the use ...

US says lead levels too high in baby food, orders reduction

WASHINGTON D.C.: This week, the US Food and Drug Administration (FDA) proposed significant limits on levels of lead in processed ...

Finland, Sweden expected to quickly join NATO

WASHINGTON, D.C.: Finland and Sweden are prepared to join the NATO alliance, the U.S. State Department announced this week.The move ...

US files antitrust case against Google over digital advertising

WASHINGTON D.C.: The US Justice Department has filed an antitrust complaint claiming that Google is abusing its dominance in digital ...

Smoking banned from Mexican hotels and beaches

Public health experts have welcomed Mexico's ban on cigarette smoking in all public places, including hotels and beaches, after the ...

Lawyers suing as Consumer Reports says high metal levels in chocolates

YONKERS, New York: After testing discovered harmful levels of heavy metals in chocolate, consumer magazine Consumer Reports has urged four ...

South Africa

Section