Mortgage rates dropped again this week, but many homebuyers are still unable to find homes they can afford, Realtor.com reports.
The 30-year fixed-rate mortgage averaged 3.6% during the week ending Aug. 8, down 15 basis points from the previous week, Freddie Mac reported Thursday. This is the lowest mortgage rates have been since the 2016 presidential election.
While the Federal Reserve did choose to cut the Fed funds rate last week, that change has already been priced into mortgage rates. This week’s decline likely reflected the growing worries in financial markets, including concerns about the ongoing trade-war between the U.S. and China.
Ultimately, the low supply of homes available for sale will at least partially stymie any boost low mortgage rates would otherwise give to the housing market.
“Rates are low, but does it matter if you can’t find anything you can afford?” said Nela Richardson, an investment strategist at Edward Jones.