The housing market is getting a bigger jolt as mortgage rates continue to tumble along with US Treasury yields.
In the week ended December 1, the 30-year fixed rate slipped to 7.17% from 7.37% in the prior week, according to the Mortgage Bankers Association.
In response to falling rates, applications for home refinancing jumped 14% in the latest week, and were 10% higher from the same week in 2022.
However, this hasn't translated into higher buying demand yet, with applications for a mortgage to purchase a home down 0.3% during the week and 17% lower from last year. High prices and a lack of housing inventory continue to bear down on homebuyers.
But buyers can expect mortgage rates to continue sliding next year, analysts predict, with the 30-year mortgage rate settling in the 6%-7% range. That's down from 8% in October.
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