Homebuyers Delay Purchases Expecting Further Mortgage Rate Drops Amid Market Uncertainty

Mortgage rates in the U.S. have recently declined to around 6.17%, the lowest in about a year, but many prospective buyers are delaying home purchases, anticipating further drops in rates. Real estate agents report that affordability remains the primary concern for buyers, despite some local price decreases and market conditions favoring buyers. Strategies like interest rate buydowns and adjustable-rate mortgages are increasingly used to manage affordability. Meanwhile, mortgage rates have shown some underlying pressure due to bond market fluctuations and upcoming inflation data, which could influence future rate movements. In the UK, homebuyers are also facing affordability challenges amid rising mortgage rates, with a lack of awareness about government and developer-backed schemes intended to assist buyers. Additionally, UK borrowers are rushing to secure mortgage deals before the November Budget amid fears that new policies could cause rates to rise further.