Mortgage Rates in the US Drop: What Does It Mean?

Hey there! Did you know that the average rate for a 30-year mortgage in the US just dropped a bit? It went from 6. 79% to 6. 78%, ending a six-week rise. Why is this happening? Well, mortgage rates are like a mirror reflecting the 10-year Treasury bond yields, which have recently been bouncing around. Just last week, these bond yields jumped because of expectations that the new president might boost government debt and inflation with plans like lowering taxes and increasing tariffs. This led to worries about faster economic growth. So, mortgage rates might stay quite volatile this year.But let's not forget that even with the recent rise, mortgage rates are still lower than they were in May, when they peaked at 7. 22%. And back in late September, they hit their lowest point in two years, dipping to 6. 08%. Now, you might be wondering, what's the big deal? Well, these higher mortgage rates and high house prices have actually kept the US housing market in a bit of a slump since 2022. Economists think that mortgage rates will likely float around 6% in 2025. So, if you're planning to buy a house, keep an eye on these rates because they can make a big difference in how much your mortgage costs.