Experts: Mortgage Rate Declines Won’t Last
The average for the 30-year fixed rate mortgage remained below 3% this week, but economists warn that rates in the 2% range likely won’t stick around much longer. Still, mortgage rates will continue to be historically low, and slight increases aren’t likely to spook home buyers, experts said.
“The low mortgage rate environment has been a boon to the housing market but may not last long, as consumer inflation has accelerated at its fastest pace in more than twelve years and may lead to higher mortgage rates in the summer,” said Sam Khater, Freddie Mac’s chief economist.
“Freddie Mac reported the following national averages with mortgage rates for the week ending May 13:
- 15-year fixed-rate mortgages: averaged 2.26%, with an average 0.6 point, falling from last week’s 2.30% average. A year ago, 15-year rates averaged 2.72%.
- 5-year hybrid adjustable-rate mortgages: averaged 2.59%, with an average 0.3 point, dropping from last week’s 2.70% average. A year ago, 5-year ARMs averaged 3.18%.
Source: National Association of Realtors, Realtor Magazine.
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