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Housing Market Gets Back-to-Back Good News

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Mortgage rates fell to their lowest level in months, according to Freddie Mac.

Mortgage rates fell to their lowest in months amid indications that borrowing costs might come down later in the year, a development that could help with affordability for prospective homebuyers at a time when supply of properties in the market was showing signs of improvement.The 30-year fixed rate mortgage fell again as it averaged 6.77 percent as of July 18, compared to the previous week's 6.89 percent.

At the same time, prices for homes shot up amid heightened demand prior to the central bank's tightening of financial conditions. The increased interest in home purchases was met with diminished supply of homes in the market, contributing to the rise in prices.Inflation fell in June, closer to the Fed's target of 2 percent, and inventory of homes for sale has grown, which has helped to bring down prices, particularly in the South and the Sun Belt.On Wednesday, the U.

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