Home News 30-year mortgage rates inch down slightly for third consecutive week

30-year mortgage rates inch down slightly for third consecutive week

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Mortgage rates have fallen again, falling for the third straight week, according to Freddie Mac. ((((iStock).

Mortgage rates have fallen slightly for the third straight week, according to New data From Freddie Mac.

Fixed-rate mortgages for 30 years have declined to an annual rate of 5.09% (APR) for the week ending June 2, 2022. This was a slight decrease from 5.1% last week, but an increase from 2.99% last year.

“Mortgage rates have continued to fall this week, but they are still significantly higher than last year, impacting affordability and purchase demand,” said Sam Carter, chief economist at Freddie Mac. “Towards the summer, the potential homebuyers pool is shrinking, supply is rising and the housing market is normalizing. This is welcome news following the unprecedented market tightness of the last few years. . “

However, 15-year mortgages increased slightly from 4.31% to 4.32%. last week From 2.27% last year. The average Treasury indexed hybrid floating rate mortgage (ARM) for five years was 4.04%, down from 4.2% last week and up from 2.64% last year.

If homeowners want to take advantage of their current mortgage rates, they can consider refinancing to save money on their monthly payments. Visit Credible to find personalized interest rates Without affecting your credit score.

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Another rate hike could come from the Federal Reserve

Federal Reserve System Interest rate hike It rose 50 basis points at the May meeting, the sharpest rate hike in about 20 years. Prior to that, the Federal Open Market Committee raised interest rates by 25 points at its March meeting. But the Fed could raise interest rates a few more times this year and until 2023 as the Fed fights. Decades-High Inflation..

“After a turbulent month characterized by widespread concerns about inflation and the possibility of a recession, the stock market ended around May, which began after last week’s rebound.” Hannah Jones, an economic data analyst at Realtor.com, said:.. “In a meeting between Federal Reserve Chairman Janet Yellen and Treasury Secretary Janet Yellen, President Biden expressed his support for the Federal Reserve’s actions to curb inflation and refrained from influencing interest rate decisions. I promised that.

“Powell and the Fed officials continued to emphasize their commitment to take action at upcoming meetings to curb prices and achieve 2% inflation,” Jones said. “In line with that goal, year-over-year consumer price inflation slowed in April for the first time since August 2021, dropping from 8.6% in March to 8.2% in April. This welcomes progress. It’s a sign of power. “

If you’re trying to take advantage of your mortgage before interest rates rise again, consider refinancing to reduce your monthly payments. Visit Credible to compare multiple mortgage lenders at once Without affecting your credit score.

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Affordable Challenges Delay Home Buying Activities

As Soaring house prices Mortgage rates remain higher than this time last year, and affordability continues to present challenges to potential homebuyers.

“The decline in mortgage rates over the past few weeks has given buyers some relief in the face of constant rises in home prices,” Jones said. “Highs and recent rises in interest rates are shown by month-on-month declines in existing home sales (-2.4%), new home sales (-16.6%), and pending home sales (-3.9), 4 Delayed monthly buyer activity.%), Because some buyers have completely opted out of the market. ”

House prices soared at All new highs According to the latest report from Case-Shiller, in March. Despite the expectation that growth may soon begin to slow, they reached an annual increase of 20.6%.

“Homebuyers continued to struggle with record highs in May, but last week’s home data shows that the number of homes for sale has increased further compared to last year, Jones said. , Expectations are rising. ” “And while inventory is still low by historical standards, it’s starting to lean towards a more buyer-friendly direction, which slows price growth in the not too distant future as sellers compete for buyers. It can lead to a more balanced market. But for those who are currently home shopping, high interest rates and home prices are still creating challenges in finding their ideal home. , We will tell you that we are not there yet. “

If you’re considering buying a home in today’s real estate market, or if you want to refinance your current loan amount to lower interest rates, you can save money by comparing multiple options. Contact Credible to talk to a mortgage expert Ask them to answer the question.

I have a financial question, but don’t know who to ask? Send an email to a trusted money expert at [email protected] And your question may be answered by Credible in our Money Expert column.

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