Mortgage Rates Continue Downward TrendBy RISMedia Staff The 30-year fixed-rate mortgage (FRM) edged down again last week, averaging 6.09%, down from 6.13% the previous week, according to the latest Primary Mortgage Market Survey® (PMMS®) from Freddie Mac released Thursday, Feb. 2. The news follows the more modest 25-basis-point interest rate hike announced by the Federal Reserve Wednesday afternoon–which experts say signals that the central bank is growing more confident in the battle against inflation. Taking a look at this week’s numbers:
What the experts are saying: Realtor.com manager of economic research, George Ratiu, commented: “The Freddie Mac fixed rate for a 30-year loan declined again from last week, to 6.09%, following the trajectory of the 10-year Treasury. With inflation pressures easing, mortgage originators have followed suit, lowering the cost of borrowing. At the same time, the Federal Reserve’s monetary tightening is pushing short-term borrowing costs higher. With the Fed’s policy rate underpinning the prime rate, a host of credit products are seeing higher rates, including credit cards, auto loans and adjustable-rate mortgages. In effect, the Fed’s actions are keeping a floor under mortgage rates for the short term. I expect rates to stay around 6% for the next few weeks. “As we move through the year, incoming economic data will play a role in the trajectory of interest rates. Most recent indicators point to a still-resilient economy. This week’s report on job openings and quits underscored that fact, showing that companies have 11 million unfilled positions, and more than 4 million workers left their employer for better opportunities. Moreover, initial jobless claims dipped below the 200,000 threshold for the past two weeks. |
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