Leaders.com
  • Business
  • Leadership
  • Wealth
  • Master Classes
  • Business
    • Entrepreneurs
    • Executives
    • Marketing and Sales
    • Social Media
    • Innovation
    • Women in Business
  • Leadership
    • Personal Growth
    • Company Culture
    • Public Speaking
    • Productivity
    • Hiring
    • Social Issues
    • Leaders
  • Wealth
    • Investing
    • Cryptocurrency
    • Retirement
    • Venture Capital
    • Loans and Borrowing
    • Taxes
    • Markets
    • Real Estate
  • Master Classes
Real Estate mortgage rates drop

(Photo by Steve Pfost/Newsday RM via Getty Images)

By Hannah Bryan Leaders Staff

Hannah Bryan

Hannah Bryan

News Writer

Hannah Bryan is a news writer for Leaders Media. Most recently she was a reporter for the Sanilac County News...

Full bio


Learn about our editorial policy

Nov 18, 2022

A New Direction For Mortgage Rates

A historically sudden decline in mortgage rates could potentially save homeowners significant amounts of money.

Key Details

  • Last week saw the largest weekly drop in mortgage rates in nearly 40 years, accompanied by the slowest home-price growth since before the pandemic. 
  • Real estate company Redfin found that the historic drop in rates could save homeowners as much as $100 per month. 
  • A better than expected inflation report last week resulted in the largest ever recorded mortgage rate drop in a single day.
  • Rates declined from 7.08% to 6.61%.
  • The week before, mortgage purchase applications saw a 4% increase. 

Why it’s news

Monthly mortgage rate payments are now right around $2,430. The decline not only lowers a buyer’s monthly payment but increases their buying power. 

Breaking it down, Redfin said in a press release that “a homebuyer on a $2,500 monthly budget can afford a $380,750 home with today’s 6.6% rates, giving them $12,000 more purchasing power than they had a week ago. That same buyer could have bought a $368,750 home with last week’s 7% rates.”

Despite the drop, mortgage rates remain more than double the rates from a year ago. It’s still too early to tell whether or not the drop will increase buying and selling yet. 

The number of pending home sales have been on the decline, largely due to high mortgage rates. Mid-November, Redfin reported that pending home sales saw their largest recorded annual decline at 35%.

Redfin experts don’t anticipate any major changes in the housing market following the mortgage rate drop. 

“Until we see more consistent evidence over time of slowing inflation and a bigger, steadier decline in mortgage rates, we expect the impact to be muted,” said Redfin economist Taylor Marr.

Home / News / A New Direction For Mortgage Rates
Share
FacebookTweetEmailLinkedIn

Related Stories

61% Of Americans Are Living Paycheck-To-Paycheck 

by Tyler Hummel Leaders Staff
Markets

Sep 8, 2023

Nearly two-thirds of Americans are feeling pinched by inflation. 

Key Details

  • LendingClub’s newest research shows that 61% of adults lived paycheck-to-paycheck in July 2023, increasing from 59% in July 2022. 
  • Even with inflation decreasing from 8.5% to 3.2% in 12 months, consumers still struggle to get by.  
  • A portion of this is attributed to irresponsible spending, with 21% of survey respondents saying nonessential spending is responsible for their financial issues. 
  • Low-income consumers—making less than $50,000 per year—were among the hardest hit by tightening wallets, Fortune reports. 
  • Bankrate’s Annual Emergency Fund Report earlier this year found that 57% of Americans cannot afford a $1,000 emergency. 

Go deeper

FacebookTweetEmailLinkedIn

Google Cracks Down On A.I. Election Ads

by Tyler Hummel Leaders Staff
Tech

Sep 7, 2023

Political campaigns using artificial intelligence (AI) generated content must disclose this information in Google and YouTube content. 

Key Details

  • Google has revealed a new disclosure policy that will force election advertisers to label AI content distinctly from real content. 
  • As of mid-November, generative AI content must receive a label to make it clearly identifiable to avoid spreading election misinformation. 
  • Google’s digital ad business joins companies like Meta Platform’s Facebook and Instagram in cracking down on deep fakes and spreading misinformation. 

Go deeper

FacebookTweetEmailLinkedIn

Vivek Ramaswamy’s Anti-ESG Firm Is Worth $1 Billion 

by Tyler Hummel Leaders Staff
Environment

Sep 7, 2023

The third most popular GOP presidential candidate has built his name fighting “wokeness”—and that reputation is paying off for his asset management company. 

Key Details

  • Ohio-based Strive Asset Management is an anti-activism fund company that promises investors higher-quality returns and investments.  
  • It was partly founded by Peter Thiel and Bill Ackman to rival investors at environmental, social, and governance (ESG)-friendly firms. 
  • On Tuesday, the firm announced that its accumulated assets now exceed $1 billion, slightly more than a year after it launched in 2022. 
  • The company is also currently facing lawsuits from two former employees arguing that it mistreats staff and engages in securities violations.

Go deeper

FacebookTweetEmailLinkedIn
Investing

Sep 7, 2023

Bill Gates Makes a $96.6 Million Bud Light Bet

by Tyler Hummel Leaders Staff
Cryptocurrency

Sep 6, 2023

Cathie Wood Bets Bullish On Big Tech 

by Tyler Hummel Leaders Staff
Some U.S. companies are finding it easier to hire help, after a rough few years
Hiring

Sep 6, 2023

Promotions Can Increase the Number Of Employees Quitting 

by Tyler Hummel Leaders Staff

Recent Articles

Business

Sep 18, 2023

25 Recession-Proof Jobs That Keep People From Getting Laid Off at Work

Learn what the safest jobs are during an economic downturn

Leadership

Sep 14, 2023

Maladaptive Daydreaming Signs + 4 Ways to Manage Them

Maladaptive daydreaming involves daydreams that interfere with daily functioning

Hiring

Sep 13, 2023

40 Smart Questions to Ask at the End of an Interview to Get Hired

Impress hiring managers with these thoughtful questions

  • Business
  • Leadership
  • Wealth
Join the Leaders Community

Get exclusive tools and resources you need to grow as a leader and scale a purpose-driven business.

Subscribing indicates your consent to our Terms & Conditions and Privacy Policy

Leaders.com
  • Privacy Policy
  • About
  • Careers
  • Cookie Policy
  • Terms
  • Disclosures
  • Editorial Policy
  • Member Login

© 2023 Leaders.com - All rights reserved.

Search Leaders.com