Mortgage rates recorded the biggest decline this year as investors bet that the economy was heading down.
30-year fixed rate mortgage average interest rate dropped to 5.30%, mortgage finance giant
I said on Thursday. This is down from 5.70% last week, but well above the 3.22% at the beginning of the year.
Growing concerns about the US recession will further lower mortgage rates as investors invest in US Treasuries. This is widely regarded as a safe investment during times of economic uncertainty. Mortgage rates are closely tied to benchmark 10-year US Treasury yields and have fallen to their lowest levels in more than a month this week. As the price goes up, the yield goes down.
Slightly lower borrowing costs could provide some relief to potential homebuyers who had to fight this spring. Double-digit growth in home prices And the fastest acceleration of mortgage rates in decades. Some mortgage lenders have already quoted interest rates above 6% and some buyers have been kicked out of the market.
Share your thoughts
How does a change in mortgage rates affect your decision to buy or sell a home? Join the conversation below.
“Housing can be more affordable than it was three weeks ago as mortgage rates have fallen,” said mortgage spokesman Holden Lewis.
Said in a statement. “If there was such a thing in the first half of 2022, it was rare.”
Monthly mortgage payments remain at the most affordable level in a few years. According to the Atlanta Federal Reserve Bank, a typical US household will pay an additional $ 400 a month to pay a mortgage than in January. A typical family is a household with income close to the median in the United States and buys a home close to the median purchase price. According to the Atlanta Federation, in April, a typical American household would have needed 41.2% of their income to cover their monthly mortgage payments.
Write in Orla McCaffrey at [email protected]
Copyright © 2022 DowJones & Company, Inc. All rights reserved. 87990cbe856818d5eddac44c7b1cdeb8