Borrowers and buyers awoke to a new normal in housing affordability last week, as mortgage rates dropped to the lowest level in more than a year and are now expected to stay low for a while.
Last week, the average contract interest rate for 30-year fixed-rate mortgages with conforming loan balances decreased to 4.45 percent from 4.55 percent, with points decreasing to 0.39 from 0.42 for loans with a 20 percent down payment. Homebuyers also reacted positively, with purchase applications surging 6 percent for the week, although just 4 percent higher annually. Consumers shopping for homes are still facing higher prices, but the gains are shrinking and have been for the past 10 months. Nationally, prices were up 4.3 percent annually, according to the latest S&P CoreLogic Case-Shiller home price index.
He do i