Lower Rates Not Enough to Inspire Buyers

Mortgage rates went down this week, following the 10-year U.S. Treasury note, in the wake of Turkey's currency bottoming out and as housing market activity drags on the overall economy.

According to weekly data from Freddie Mac, the 30-year fixed-rate mortgage went down six basis points to 4.53 percent, the 15-year fixed-rate mortgage went down .04 percentage points to 4.01 percent, and the 5-year hybrid adjustable-rate mortgage was down three basis points, MarketWatch reports. While lower rates are typically a source of relief for borrowers, inventory has been so tight, and home prices so high that many buyers have abandoned their search, prompting experts to forecast that housing will drag down the overall economy in the near term. Doug Duncan, chief economist for Fannie Mae explains, “Housing continues to drag on growth due to lackluster home building activity, home sales, and brokers’ commissions.”

The stagnant housing market may also be impacting the labor market. The percentage of job seekers relocating for new employment was at longtime lows earlier this year, said outplacement consultancy Challenger, Gray & Christmas on Thursday. Just over 10 percent of job seekers relocated for work in the first six months of 2018, compared with an average of 19 percent over the previous decade.

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