Policymakers already lifted the benchmark federal funds rate seven consecutive times in 2022 and have indicated they plan to continue raising rates higher this year as they try to crush inflation that is still running abnormally high. Still, demand has shown early signs of returning as mortgage rates continue to fall from a record high of 7.08% in November. dropped to 6.15% this week, according to data from mortgage lender Freddie Mac.
Mortgage applications are up 28% from early November, according to Redfin, which has sent the typical homebuyer's mortgage payment down about 10% – or roughly $180 – since the fall. GET FOX BUSINESS ON THE GO BY CLICKING HERE Even with higher interest rates putting homeownership out of reach for millions of Americans, prices are still steeper than just one year ago. The median price of an existing home sold in December was $372,700, a 2% increase from the same time a year ago, according to aincreases, the longest-running streak on record.