Mortgage Rates Creep Lower, While Home Prices Remain High.<br />NBC reports that mortgage rates have <br />finally started to come back down following<br />a dramatic rise in the housing market.<br />On November 16, Fannie Mae said <br />interest rates on 30-year fixed-rate<br />mortgages were down to 6.73%. .<br />In October, rates peaked at over 8%. .<br />The lower rates have caused demand <br />for mortgages to slowly creep higher. .<br />Despite the positive change, the Mortgage Bankers <br />Association said demand was 12% lower in early <br />November than it was at the same time last year.<br />While borrowing costs on mortgages have <br />reached a two-decade high, shortages in the <br />housing market continue to drive prices higher.<br />The Federal Reserve has been raising rates <br />in an attempt to manage high inflation, <br />increasing its benchmark rate from near-zero <br />last year to as high as 5.5% in July of this year.<br />The hikes have driven up rates <br />for mortgages, auto loans, <br />credit cards and other financial products. .<br />Signs of inflation starting to fade have fueled <br />predictions that the Fed may be satisfied <br />with its efforts to bring prices under control.<br />NBC reports that lower rates may not <br />make homes more affordable over the long term, <br />as prices tend to go up when rates fall <br />because of increased buyer borrowing power
