Mortgage rates in the US take a breather after the results of inflation

The mortgage market in the United States (EU) has taken a breather given the results of inflation in that country, which moderated compared to previous months, which caused the Average rate of the credits for housing acquisition will be located at 6.61%, from 7.08% that it registered a few days before.

According to specialists, although this may be a momentary relief given the abrupt increase that has been registered in the mortgage loan rates in the last year, there are factors that will still keep pressure on the housing market in that country in the coming years, specifically in terms of financing for the acquisition of a home.

“Although the decline in mortgage rates This is good news, there is still a long way to go for the housing market. Inflation remains high, the Federal Reserve is likely to keep interest rates high interest rates and consumers will continue to feel the impact,” Freddie Mac detailed when disclosing the weekly results.

According to the firm, this week the Average rate of the mortgage credits at 30 years it was 6.61%, when a year ago said percentage was 6.93 percent. Said result occurred in a context where the inflation data in that country also seem to have moderated.

According to the results of the Federal Reserve, last October inflation in the United States was 7.7% per year, when in September of this year there had been a rise of 8.2 percent.

“Las mortgage rates fell this week on incoming data suggesting inflation may have peaked,” Freddie Mac said.

Trend in the coming months

For Nadia Evangelou, senior economist and director of Forecasts at the National Association of Realtors (NAR) in the US, although inflation continues to slow down in the coming months, it is likely that the mortgage loan rates hardly exceed the 7 percent threshold.

“That’s still double the bowl from the previous year, but it’s better than a bowl of 8%, which is the historical average for a 30-year fixed mortgage”, highlighted Evangelou, adding that for each percentage point that the bowl decreases, the monthly financing payment is also reduced by $250.

Despite the respite this week, for the NAR specialist, having doubled the rates In the one-year period, it also affected purchase intention, as many potential first-time homebuyers slowed down their decision due to the cost of financing.

“With a bowl At close to 7%, 1 in 8 renters can afford to buy a median-priced home. By contrast, nearly 1 in 3 renters could afford to buy a median-priced home a year earlier, when the rates were close to 3%,” Evangelou said.

For the NAR analyst, although the rates behaving in a range between 6% and 7% could be the trend for the coming months, this could affect the decision of new potential buyers to purchase a home.