Mortgage rates fall to the lowest average in a year

The average US mortgage rate has fallen this week to the lowest average in over a year, potentially offering homebuyers a boost for their affordability, with Wall Street remaining focused on global headwinds.

The 30-year fixed rate mortgage averaged 4.35% during the week of February 21, according to data released Thursday by mortgage buyer Freddie Mac. This is down 0.02 percentage points from the 4.37% average recorded the previous week.

Meanwhile, the 15-year adjustable rate mortgage averaged 3.84%, down from 3.88% the week of February 14th.

Reacting to fears of a potential economic slowdown – caused by a trade war between the United States and China and the uncertainties surrounding Brexit – the Federal Reserve announced this week that it would adopt a patient approach in that regard. which concerns interest rate increases 2019.

The central bank's rate hikes put upward pressure on interest rates for mortgages, credit cards and other forms of lending, increasing borrowing costs for consumers.

According to Mortgage News Daily, existing home sales edged down in January to 4.94 million euros, down 1.2 percent from December's 4.99 million annual rate.

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"Existing home sales in January were low by historic standards, however, they are expected to have reached a cyclical low," Lawrence Yun, chief economist of the National Association of Realtors, said in a statement. Household income will increase affordability, bringing more buyers to the market in the coming months. "