Mortgage rates in the US have been declining in recent weeks, reaching their lowest level since December, which has encouraged prospective homebuyers as the spring season begins. However, factors such as signs of a slowing economy and uncertainty over the Trump administration’s tariffs on imports are complicating predictions for future rate movements. Joel Berner, senior economist at Realtor.com, noted that significant relief from high mortgage rates is unlikely soon due to persistently high inflation, which tariffs may exacerbate. The average rate on a 30-year mortgage fell to 6.76% last week from 7.04% in mid-January, according to Freddie Mac. Despite this decline, home sales have not increased, with January seeing a drop in previously occupied home sales. Pending home sales also hit an all-time low in January, signaling potential further declines. Mortgage applications did see a sharp increase last week, suggesting some buyers are responding to lower rates. However, economists warn that worsening economic conditions could deter buyers despite more attractive mortgage rates. — news from The Associated Press
