Mortgage Rates Fall Slightly But Remain High, Hurting Affordability and Causing Homebuilders to Offer Buydowns

Mortgage rates fell slightly this week but remain near 20-year highs, pricing many buyers out of the market.

Applications for adjustable-rate mortgages are increasing as buyers seek lower initial rates.

Low mortgage rates have discouraged many homeowners from selling, leading to low inventory.

Homebuilders are using rate buydowns to lower mortgage rates and attract buyers.

Lower rates through buydowns help buyers qualify for loans and fit payments into budgets.