U.S. Mortgage rates decline for the First Time in Three Weeks
Afterclimbingforthreeweeks,mortgageratesfellthisweek,albeittheyarestill unpredictableduetocontradictoryeconomicsigns.Accordingtoinformation fromFreddieMacpostedonThursday,the30-yearfixed-ratemortgageaveraged 6.71%intheweekendingJune8,downfrom6.79%theweekbefore.The30yearfixedratewas5.23%ayearago.
The Biggest Barrier for Homebuyers
AccordingtoSamKhater,chiefeconomistatFreddieMac,“inventorycontinues tobethebiggestbarrierforpotentialhomebuyers,despiteelevatedratesand otheraffordabilitychallengesremaining.”Manycurrenthomeownersare
hesitanttolisttheirpropertiesonthemarketandexchangetheirextremelylow interestrateforsomethingmuchhigherbecauseratesarefarhighernowthan thefixedratetheyoriginallypurchasedorrefinancedinto.Lowavailablehousing stockistheresultofthis.
Alittlemorethanayearago,mortgagerateswentabove5%forthefirsttime since2011,andtheyhavebeenabove5%eversince,withtheexceptionofone week.Sincethen,theyhaveincreasedto7.08%,whichwaslastattainedin November.Rateshavefluctuatedsincemid-Marchbuthadbeenbelow6.5%until lastweek.BasedonmortgageapplicationsthatFreddieMacreceivesfrom thousandsoflendersnationwide,theaveragemortgagerateiscalculated.Only borrowerswithgreatcreditanda20%downpaymentareincludedinthe survey.
U.S. mortgage rates decline, inventory issues still remain Experts’ Opinion
AccordingtoJiayiXu,aneconomistatRealtor.com,mortgageratesfluctuatedaily asaresultoftheeconomy’svolatilityanduncertainty,andhavebeenrisingin linewiththetrendof10-yearTreasuryyieldsasinvestorsassessthepotential courseoftheFederalReserve’sinterestratepolicyatitsmeetingnextweek.
FederalReservemembersalludedtodeferringaratehikeinJuneinspeecheslast week,allowingtheFedtogatheradditionalinformationbeforemakingany decisions,accordingtoXu.Althoughtheremarksarenotofficialpolicy,shesaid that“policymakersareindicatingthatthecurrentinterestratemaynothave reacheditspeakforthisparticulareconomiccycle”byframingtheconversation intermsof“skipping”ratherthan“pausing,”
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