Mortgage rates have fallen again, falling below 3% for the third straight week. But homebuyers and those looking to refinance at the last minute shouldn’t rely on keeping interest rates so low for much longer.
30-year fixed-rate mortgages averaged 2.96% for the week to May 6, down one basis point from last week’s Freddie Mac.
Report on Thursday.. This week’s measurements represent the lowest benchmark mortgage rates since mid-February.
Fixed-rate mortgages for 15 years also fell one basis point from a week ago, averaging 2.3%. Adjustable rate mortgages in the Treasury Index for five years averaged 2.7%, up 6 basis points from the previous week.
Zillow economist Matthew Speakman said:
Mortgage rates have historically followed the path of long-term bond yields, including 10-year government bond yields.
However, that relationship can be weakened throughout the COVID-19 pandemic.
Treasury Secretary Janet Yellen Suggestions this week Interest rates may need to be raised to prevent the US economy from overheating. Speakman warned that Thursday’s low interest rates could be a moment.
“This relatively mild period will be tested in the coming days,” Speakman said. “April employment statistics and inflation data are two key indicators of economic progress and are scheduled for this week, with stronger-than-expected measurements in either or both reports raising mortgage rates upwards. May be returned. “
“This relatively calm time will be tested in the next few days.”
Homebuyers, even temporary ones, are in a position to benefit from this lower interest rate. George Latiu, senior economist at Realtor.com, said favorable funding will continue to motivate buyers.
What’s more, new data from Realtor.com show that more sellers are entering the market, especially in states where COVID-19 restrictions are being relaxed, and housing supplies are record. It offers some relief to buyers who faced fierce competition in the small. For sale. The new list for the week ending May 1 has increased by 18% from a year ago.
“For first-time homebuyers, higher inventories and lower interest rates may open up windows for opportunities as May progresses, suggesting that price increases may begin to slow down,” Raitu said. I am.
Mortgage rates will drop to their lowest levels since mid-February, but economists warn that higher rates could come soon
Source link Mortgage rates will drop to their lowest levels since mid-February, but economists warn that higher rates could come soon