The 30-year fixed mortgage rate fell to 6.95% as of November 3.
According Mortgage Professional America, the drop followed the Fed’s decision to raise its benchmark interest rate by another 75 basis points to cool demand and bring prices under control.
“Mortgage rates continue to hover around 7%, as the dynamics of a once-hot housing market have faded considerably,” said Sam Khater, Freddie Mac chief economist. “Unsure buyers navigating an unpredictable landscape keep demand declining while other potential buyers remain sidelined from an affordability standpoint. Yesterday’s interest rate hike by the Federal Reserve will certainly inject additional lead into the heels of the housing market.”