U.S. mortgage rates have fallen for the third straight week, with Freddie Mac reporting the average rate for a 30-year fixed mortgage at 6.6%, down from 6.69%. According to Redfin Corp., home purchase contracts increased by 4.1% year-over-year, indicating that buyers are progressing despite affordability challenges. The median sale price has risen by 6% over the past year, keeping affordability a concern as rates remain high.
Freddie Mac's Chief Economist, Sam Khater, noted that declining mortgage rates, strong consumer income growth, and a rising stock market have boosted buyer demand. However, the real estate market's outlook is only slightly improving due to ongoing affordability issues.
