Mortgage interest rates in U.S. have fallen back below 7% - MBS.
For the week ended Nov. 11, the average contract rate on a 30-year fixed-rate mortgage fell by 24 basis points to 6.90%.
This would allow the Federal Reserve to reduce its aggressive interest rate hikes. The 10-year note yield serves as a benchmark for mortgage rates.
Despite the positive news, mortgage rates remain more than double what they were at the start of the year.
U.S. central bank's swift increases in its benchmark overnight lending rate has weighed heavily on the housing sector.
The MBA's Market Composite Index, which measures mortgage loan application volume, increased 2.7% from the previous week.
When the Fed meets again on December 13-14, it is expected to slow its rate hike pace to a half-point increase.
After raising its policy rate by 75 basis points in the previous four meetings, the Central Bank will give the economy time to adjust to the fastest rate of monetary policy tightening in 40 years.
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