MORTGAGE

Lowest mortgage interest rates in the United States 

By Ajay Pandit

Jan 18, 2023

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Data from the Mortgage Bankers Association (MBA) on Wednesday 

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indicated that the average interest rate on the most common home loan in the United States 

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fell to its lowest level since September as fresh signs that inflation has peaked caused Treasury yields to decline.

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For the week ending January 13, the typical contract rate on a 30-year fixed-rate mortgage decreased by 19 basis points to 6.23%. 

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The Federal Reserve may now pull down its significant interest rate hikes and 

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plan a stopping point this spring thanks to a series of recent data that shows high inflation is receding. 

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This has boosted financial markets.

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The U.S. central bank increased its benchmark policy rate in 2022 at the quickest rate in 40 years, 

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sending mortgage rates soaring to above 7% in October. 

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Because mortgage rates are still nearly double what they were a year ago, 

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the interest-rate-sensitive housing industry has been hardest hit by the Fed's moves.

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More purchasers were drawn in because of the relief in mortgage rates. 

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The MBA's Market Composite Index, a gauge of mortgage loan application volume, 

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increased by 27.9% over the previous week, the largest increase since March 2020.

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After raising its policy rate by 50 basis points in December, 

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the central bank is anticipated to decrease the pace of rate rises to a quarter percentage point increase 

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at its upcoming meeting on January  31-February 1.