Mortgage rate drop lures skittish buyers back to housing market, report shows

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Mortgage Rates,Real Estate Brokerage,Affordability Crisis

As of Aug. 7, the popular 30-year fixed mortgage rate is near its lowest levels in months at 6.58%, after a weaker-than-expected jobs report stoked recession...

- A drop in mortgage rates to over one-year lows has prompted some prospective buyers to resume house-hunting, a report from real estate brokerage Redfin showed on Thursday.As of Aug. 7, the popular 30-year fixed mortgage rate is near its lowest levels in months at 6.58%, after a weaker-than-expected jobs report stoked recession fears. Despite the small improvement in affordability, pending sales still posted their biggest year-over-year decline in nine months, the Redfin report said.

More home buyers are entering the market following a period of depressed demand when mortgage rates went over 7%. - While that's a typical seasonal decline, the year-over-year increase of 3.2% is the smallest in nine months, indicating that price growth has eased slightly."Many of the buyers I'm working with are excited because they've been casually house hunting for a year, waiting for rates to come down before they make an offer. Now a lot of those buyers want to get in ... before rates get too low and cause more competition," said Shoshana Godwin, Redfin premier agent.

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In a tough mortgage market, here’s how to score the biggest rate discountA mortgage agent with TMG The Mortgage Group, pegs the decline at between 0.05 and 0.1 of a percentage point
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