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US Mortgage Rates Drop Slightly, Still Hovering Near Highest Levels Since 2000

Economic pressures pushing borrowers to consider adjustable rate mortgages as national average for a 30-year fixed-rate drops to 7.76%, first decline after steady increase for seven weeks.

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Overview

  • Despite a small drop, US mortgage rates are hovering near the highest levels since 2000, with a national average for a 30-year fixed-rate mortgage dropping to 7.76%.
  • The increase in mortgage rates is driven by factors such as the Federal Reserve's current monetary policy, the state of the bond market, especially 10-year Treasury yields, and competition between mortgage lenders.
  • Economic pressures are leading borrowers to consider adjustable rate mortgages (ARMs) instead of conventional home loans.
  • For homeowners struggling to keep up with mortgage payments, there are several options available, including loan forbearance, refinancing the loan, loan modification, or seeking government assistance programs.
  • Mortgage rates continue to impact the housing market with high rates discouraging homeowners from selling and reducing the affordability of homes for prospective buyers.