Mortgage rates hit new low, but housing market remains stagnant

Mortgage rates have continued to decline, sparking some signs of life in the stagnant real estate market. The average rate for a 30-year fixed mortgage fell to 6.67% this week, down from 6.95% last week. The rate on a 15-year fixed mortgage also dropped to 5.95%. While this has brought potential home buyers back into the market and led to a rise in home builder confidence and new construction, economists do not expect affordability to improve significantly in the near future. Home prices remain elevated, and the housing market continues to face a shortage of inventory.