Homebuyers still are waiting out high mortgage rates

Mortgage applications dropped another 4%, despite rates being at their lowest level since February 2024.

Transcript

00:00I'm Conway Gittins reporting from the New York Stock Exchange.

00:02Here's what we're watching on the street today.

00:05Tech earnings are influencing Wall Street's mood.

00:07Profits at Google parent Alphabet were better than expected, but sales were a mixed bag.

00:12Total revenue at $84.7 billion was a tad ahead of forecast, led by a 29 percent surge in

00:19cloud revenues.

00:21YouTube ad sales, however, did not match analysts' forecasts.

00:25In addition, overall spending at Alphabet was a bit high for investors' tastes.

00:31In other news, mortgage rates are down, but not by enough to lure buyers to sign on the

00:35dotted line.

00:37The average rate on a traditional 30-year home loan fell to 6.82 percent for the week

00:42ended July 19th, from 6.87 percent the week before.

00:47According to the Mortgage Bankers Association, that's the cheapest mortgage since February.

00:52That drop in rates, however, is not leading to a rush in new mortgages.

00:56Prospective homebuyers believe rates will further ease and are holding out for a better

01:00deal.

01:01Applications for new mortgages dropped 4 percent last week and plunged 15 percent compared

01:06to the same time a year ago.

01:08Joel Kahn, vice president and deputy chief economist for the NBA, said, quote, ongoing

01:13affordability challenges persist with rates at their current levels and with home price

01:17appreciation still strong in many markets.

01:21Fresh housing data for June backs that up.

01:23New home sales fell to their lowest since 2023, with the median sales price at $417,300.

01:30Meanwhile, sales of existing homes plunged to their lowest of the year.

01:35That median sales price rose to a record high of $426,900.

01:42That'll do it for your daily briefing from the New York Stock Exchange.

01:45I'm Conway Gittens with the Street.

01:51Thanks for watching.