Trending: Mortgage Rates DROP in Wake of Bank Failures
The average 30-year fixed-rate home loan fell to 6.6% this week --down from 6.73% last week, according to a report released today by Freddie Mac.
Wall Street investors were sent into a flurry following the recent U.S. bank failures, activating a shift in the real estate market that brought down mortgage rates to the lowest they've been in weeks.
A boost in bond competition from investors (including mortgage-backed securities) typically results in cheaper homebuyers' borrowing costs --hence lower rates.
"Mortgage rates are down following an increase of more than half a percent over five consecutive weeks," said Sam Khater, Freddie Mac's chief economist. "Turbulence in the financial markets is putting significant downward pressure on rates, which should benefit borrowers in the short term."