Mortgage rates fell below 5% for the first time since April as a result of a struggle between inflation and economic expansion.
Sam Khater, chief economist of Freddie Mac, stated that “the significant uncertainty around inflation and other factors will likely lead rates to remain unpredictable,” particularly as the Federal Reserve tries to navigate the present economic situation.
FMCC FEDERAL HOME LOAN MORTGAGE CORP. Ticker Security Last Change Change percent 0.5805 -0.01 -0.94% According to the National Association of Realtors, rates may have peaked.
According to Lawrence Yun, chief economist at NAR, “the peak in mortgage rates may have already happened.” “That’s because recent drops in the price of oil and gasoline will reduce pressures from broader inflation. Less inflation results in the Federal Reserve setting less aggressive interest rates.
JOBLESS CLAIMS ARE RISING AGAIN, APPROACHING 8-MONTH HIGH.
As said by Freddie Mac:
For the second week in a row, the rate on the standard 30-year mortgage decreased, averaging 4.99 percent, down 0.8 percent from 5.30 percent the previous week. The rate was 2.77 percent a year ago. The 15-year rate decreased by 0.6 percent to 4.26 percent. The average rate for a 15-year fixed-rate mortgage last year was 2.10 percent. The average rate for a hybrid adjustable-rate mortgage (ARM) with a 5-year Treasury index dropped to 4.25 percent from 4.29 percent. The 5-year ARM’s average rate at this time last year was 2.40 percent.
Mortgage rates may rise shortly, but they are not likely to go back up to 6%. Any decline ought to be seen as a second chance.
– Lawrence Yun, chief economist for the National Association of Realtors. Any reduction in mortgage rates is welcome news for prospective homeowners, Yun continued. “Although still higher than a year ago, the present rate of under 5 percent results in about a 12 percent decrease in monthly payments as compared to when mortgage rates peaked at 6 percent just two months ago.
Mortgage rates may rise shortly, but they are not likely to go back up to 6%. Every downturn should be seen as a second chance.
JUNE SHOWS A 9.1% INCREASE IN INFLATION, ACCELERATING TO A NEW 40-YEAR HIGH.
The decline occurs as applications for first-time claims increased to 260,000 for the week ending July 30, up 6,000 from the previous week’s revised number, according to the most recent data on unemployment claims.
RDFN REDFIN CORP. 9.04 0.24 2.78 percent Ticker Security Last Change Change Percentage RKT ROCKET COMPANIES INC. 10.12 -0.12 -1.22 percent RLGY n.a. n.a. n.a.
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According to the Department of Labor, rentals increased by 5.8 percent in June, while homeowners’ equivalent rent increased by 5.5 percent. This drove up the consumer price index component the shelter component by 5.6 percent. Since February 1991, the shelter index increased at its highest rate during a 12-month period.