Jeff Sica of Circle Squared Alternative Investments warns that the Fed’s small rate cut will not ease the housing affordability crisis and says gold remains a top hedge against inflation and global uncertainty.
mortgage rates It fell this week for the first time in three weeks, mortgage buyer Freddie Mac said Thursday.
Freddie Mac’s latest primary mortgage market survey released Thursday showed average rates on the benchmark 30-year fixed mortgage The reading dropped to 6.3% from 6.34% last week.
A year ago the average rate on a 30-year loan was 6.32%.
An “open house” sign in front of a home for sale in the Woodland Hills neighborhood of Los Angeles, California. (Eric Thayer/Bloomberg via Getty Images/Getty Images)
“Over the past few weeks, mortgage rates have fallen to their lowest levels in almost a year,” said Sam Khater, chief economist at Freddie Mac. “There is growing evidence that home buyers are digesting these low rates and are willing to gradually move forward to buy a home, leading to increased purchase activity.”
Nearly 1 in 5 American homes saw price cuts as buyers gained an edge in the shifting market
average rate on 15-year fixed mortgage The reading fell to 5.53% from 5.55% last week.
A year ago, the rate on a 15-year fixed note averaged 5.41%.
Low mortgage rates have drawn home buyers back into the market, but many are still hesitant due to economic uncertainty, the ongoing affordability crisis in the US, and the ongoing government shutdown.
A “For Sale” sign hangs in front of a home in Patchogue, New York. (Steve Pfost/Newsday RM via Getty Images/Getty Images)
“A government shutdown not only freezes the pay of some federal workers — it shakes Americans’ financial confidence,” said Daryl Fairweather, chief economist at Redfin. “People across the country are taking in the news and wondering, ‘We’ve faced inflation, tariffs, job losses, a volatile stock market and now a government shutdown — what’s next?’ It’s understandable that some people are reconsidering purchasing a home or car when the economy feels uncertain.”
A separate report Real estate company Redfin confirmed buyers are hesitant, noting that pending home sales in September fell 1.3% from a year earlier, the biggest decline in five months.
A home for sale in Cupertino, California. (Photographer: Lauren Elliot/Bloomberg via Getty Images/Getty Images)
“But buyers aren’t budging,” Redfin said. “The typical home that sells is taking 48 days to come under contract, which is a week longer than last year and the longest period since September 2019.”
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Redfin said its agents in much of the country reported that potential homeowners were waiting for mortgage rates to drop further before getting back into the market.
“Some potential buyers are also wary of making large purchases while the economy is uncertain, the government shutdown and recent weak jobs reports have left some Americans insecure about their finances,” Redfin said.
Reuters contributed to this report.
