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A tug of war between inflation and economic growth pulled mortgage rates below 5% for the first time since April.
"The 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," said Sam Khater, Freddie Mac’s chief economist.
|FMCC||FEDERAL HOME LOAN MORTGAGE CORP.||0.581||-0.01||-0.85%|
The National Association of Realtors said rates may have topped out.
"The peak in mortgage rates may have already occurred," NAR chief economist Lawrence Yun told FOX Business. "That’s because oil and gasoline prices have been falling of late and hence will lessen broader inflationary pressures. Lower inflation means less aggressive interest rates by the Federal Reserve."
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According to Freddie Mac:
- The rate on the benchmark 30-year mortgage fell for a second straight week, averaging 4.99%, down 0.8% from 5.30% last week. A year ago, the rate stood at 2.77%.
- The 15-year rate fell to 4.26%, a decline of 0.6%. Last year, the 15-year fixed rate mortgage averaged 2.10%.
- The 5-year Treasury-indexed hybrid adjustable-rate mortgage (ARM) averaged 4.25%, down from 4.29%. A year ago, at this time, the 5-year ARM averaged 2.40%.