PHILADELPHIA (KYW Newsradio) — Mortgage rates are finally beginning to cool off after peaking at nearly 7.8% in 2023. While falling rates are a good sign for buyers, a rebound in purchasing may not happen immediately.
The average 30-year mortgage rate started falling from about 7% in mid-July. By August, it hit just under 6.5%, and as of Sept. 2, it dropped under 6%, according to data from Business Insider.
Chief Economist with Moody's Analytics Mark Zandi says rates are falling because investors are anticipating rate cuts.
"Mortgage rates are ultimately tied to treasury bonds — 10-year treasury bonds more specifically,” he said. “And investors, if they think the fed is going to be cutting interest rates, value those bonds more."
Zandi says it may be premature to purchase or refinance right now, but it is a good time to evaluate what to do in the future.
Zandi added that, while the Philadelphia housing market has experienced trouble over the last few years, it has weathered the storm better than most other parts of the country.