is a website intended for research, review and comparison and, as such, falls under "Fair Use". Certain providers listed on our website offer us affiliate revenue, or a referral fee when you order their service.ĭisclaimer: All rights reserved. We continuously update the website to provide you with the latest deals and most accurate information. We provide information collected from providers, publicly available websites, and government sources. Higher borrowing costs and a shortage of available homes are largely to blame for a 22% drop in home sales in the 12 months ended in March, marking eight straight months of annual sales declines of 20% or more.Affiliate Disclaimer: is an independent, review, availability, comparison, and research website that is supported by advertisement, referral, and affiliate compensation. This week, it averaged 6.39%, down slightly from last week, according to mortgage buyer Freddie Mac. The average rate on a 30-year mortgage reached a two-decade high of 7.08% last fall after months of Fed rate hikes and stubbornly high inflation. Investors’ expectations for future inflation and global demand for U.S. That’s because higher rates push bonds prices lower, which then causes their yield to go up. Shifts in the Fed’s benchmark lending rate don’t directly affect mortgage rates, but they do influence the yield on 10-year Treasury bonds, which lenders use as a guide to pricing home loans. “There’s a chance mortgage rates come down, but I expect we’re still going to be in the 6% (range), though.” “There is still uncertainty in the economy,” said Lisa Sturtevant, chief economist at Bright MLS. More weakening could help bring down mortgage rates, though the reverse is also true. economic activity, stagnated in March for a second straight month. Consumer spending, which accounts for 70% of U.S. The nation's GDP rose at just a 1.1% annual rate in the January-March quarter, down from 2.6% growth in the previous quarter. While inflation has fallen from a peak of 9.1% last June, it's still well above the Fed’s 2% target rate, despite signs that the economy is slowing.
“Any meaningful and sustained decline in mortgage rates will require further easing of inflation pressures and continued slowing of the economy,” McBride said. While the Fed stopped short of declaring an end to the hikes, its effectively raised the possibility of pausing them after a streak of 10 increases going back to March 2022.Ī pause would likely only nudge mortgage rates modestly lower, said Greg McBride, chief financial analyst at. The Fed raised its short-term rate to roughly 5.1% Wednesday, the highest since 2007. LOS ANGELES (AP) - Homebuyers should get used to painfully high mortgage rates, despite this week's signal from the Federal Reserve that it could finally pause its yearlong campaign of rate hikes.
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