Mortgage Rates Dropping

The average 30-year mortgage rate in the US fell for the second consecutive week, providing some relief to homebuyers struggling with high prices and a shortage of supply. The rate fell to 7.02% from 7.09% last week, after following a five-week increase that reached its highest level since November 30. Higher mortgage rates can add hundreds of dollars a month in costs for borrowers, limiting their purchasing options. The decrease in rates may provide more wiggle room in the budgets of prospective homebuyers. Mortgage rates are influenced by factors such as bond market reactions to the Federal Reserve’s interest rate policy and Treasury yields. Economists say mortgage rates are unlikely to ease significantly. (