Mortgage rates are expected to follow the decrease in the 10-year Treasury yield, which is at its lowest level since September 22.
The decline in mortgage rates is good news for home buyers and investors in home builders.
Freddie Mac’s weekly measure of mortgage rates fell slightly from a 23-year high, and there may be further declines not yet reflected in the data.
The lower rates may not immediately prompt buyers to enter the market, but it provides optimism that rates have stopped rising.
Investors in home builders are expected to benefit from the drop in yields, with two ETFs tracking the industry showing gains.
New home sales have remained strong despite higher rates, but the 10-year Treasury yield still impacts builder stocks.