Facts: The average 30-year fixed mortgage rate from Freddie Mac was essentially flat at 6.78% from 6.79% last week. At 6.78%, with 20% down, a monthly mortgage payment is $2,082 on a home with a price of $400,000. With 10% down, the typical payment would be $2,342.

Positive: Mortgage applications increased this week despite higher rates over the last few weeks. The election was decided, and buyers have resumed their search after an election pause. Even with a historically low share of first-time buyers, it is important to note that late Fall and Winter months are traditionally more favorable for first-time buyers as families bow out. 

Negative: There have been two Fed rate cuts, and more are expected in 2025. However, these are not directly tied to mortgage interest rates, which are more closely tied to the 10-year treasury, which has increased in the last week. This week also showed inflation (down from last year but up from last month).
 

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