Source: Yahoo! Finance —
Mortgage rates tumbled by their biggest weekly drop in four decades after new data suggested inflation could be starting to cool.
Consumer prices rose by 7.7% in October — a slower pace than economists predicted — and the average rate on a 30-year fixed home loan dropped back below 7% shortly after last week’s announcement.
“Some buyers may want to wait and see if rates will drop even lower,” says George Ratiu, manager of economic research at Realtor.com.
“However, with inflation still north of 7% and the Fed committed to keep increasing the funds rate over the next few months, the mortgage market is not out of the woods. We may still see rates rebound back above 7% before the end of the year.”
30-year fixed-rate mortgages
At 6.61%, the average 30-year fixed-rate mortgage right now is a far cry from the previous week’s rate of 7.08%, Freddie Mac reported Thursday.
At this time last year, the 30-year rate was averaging 3.10%.
“Mortgage rates tumbled this week due to incoming data that suggests inflation may have peaked,” says Sam Khater, Freddie Mac’s chief economist.
“While the decline in mortgage rates is welcome news, there is still a long road ahead for the housing market. Inflation remains elevated, the Federal Reserve is likely to keep interest rates high and consumers will continue to feel the impact.”
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Stop the BS with mortgage rates! Bring the rates back down to around 4%. Let the economy run its natural course. Manipulating the fed rates will not help inflation. Bring the rates down to around 4% and the economy will correct itself
We will never see anywhere close to 4% ever again. 7% is the historical average. We wish but it’s simply not going to happen
The current market is all do to Biden and the Democrats to hurt the American people on purpose too push their Green New Deal and kill American energy. It makes no sense, other then they want the power to to gain permanent control over the American population while they live like royalty. All government employees are fat cats, collecting government pay checks, while they di the absolute minimum in work or production. Of course, they take their two coffer breaks an lunch hour each since they work so hard…the open borders is right up the Democrats alley( their fat cat donors want cheap labor and the Democrats want the illegal to vote for them). Just today Chuckie Shumer( a 40 year Democrat politician in office, way too long, keeps sucking paychecks from the American tax payers each pay period and he loves it…plus all the government perks that we tax payers pay for…it is a disgrace…even worse with a crumb like Biden who has milked the tax payers for 50 years. He and