Mortgage rates drop amid signs that inflation may have finally peaked

Source: CNN — 

Mortgage rates ticked lower last week, falling back toward the 5% mark following economic reports that indicated inflation might have finally peaked.

The 30-year fixed-rate mortgage averaged 5.13% in the week ending August 18, down from 5.22% the week before, according to Freddie Mac. Despite the latest drop, rates are still significantly higher than this time last year, when the 30-year was 2.86%.

After starting the year at 3.22%, mortgage rates rose sharply during the first half of the year, hitting a high of 5.81% in mid-June. But since then, concerns about the economy and the Federal Reserve’s mission to combat inflationhave made them more volatile.