The sell-off in the stock market is causing an unexpected turnaround in mortgage interest rates.
The average rate on the popular 30-year fixed mortgage was at 3.75% last Friday. By Thursday, it had dropped to 3.62%, according to Mortgage News Daily. This is an average for borrowers with solid credit scores and at least a 20% down payment.
“The market for new homes has been improving from last year’s pause, as lower interest rates have stimulated demand and improved affordability, while the overall fundamentals of the economy have remained strong,” Lennar Executive Chairman Stuart Miller said on a call with analysts.
He also said low rates outweighed concern over a potential recession.
“I know that there is a lot of question about upcoming potential recession and things like that. Our customers don’t seem to be viewing it that way, and I think that the housing market in general seems solid and strong and continuing to improve,” Miller added.