Long Term Mortgage Rates Fall
You don’t have to be a news hound to know about inflation these days. You may have also heard about the Federal Reserve aggressively raising its main borrower rate to help combat inflation.
As we previously noted, long term mortgage rates are not directly tied to the Fed rate. So while home loan rates have gone up from their historic lows of a year ago, this week rates actually dropped significantly for 30 year mortgages. According to Freddie Mac the 30-year rate fell considerably to 4.99% down from 5.3% last week.
The average long-term US mortgage rate fell below 5% for the first time in four months, days after the Federal Reserve jacked up its main borrowing rate in an aggressive effort to get inflation under control.
The 30-year rate tumbled to 4.99% from 5.3% last week, mortgage buyer Freddie Mac reported Thursday. A year ago, the rate was 2.77%.
Rates are definitely violatile as there are mixed signals on recession (and its potential depth) as Freddie Mac’s economist Sam Khater noted, “mortgage rates remained volatile due to the tug of war between inflationary pressures and a clear slowdown in economic growth, high uncertainty surrounding inflation and other factors will likely cause rates to remain variable, especially as the Federal Reserve attempts to navigate the current economic environment.”
Definitely check in with us about current rates and we can see what program best fits your needs, just schedule a consultation or fill out our qualify wizard on our website.
