Following sharp spikes driven by inflation worries, geopolitical concerns and
The average of the 30-year fixed rate mortgage dropped 15 basis points to 5.1% from 5.25%
Various factors resulted in see-saw action over the past seven days, but ultimately drove the average downward, said Paul Thomas, vice president of capital markets at Zillow.
“While strong
“Large retailers reported disappointing earnings last week and markets reacted with declines in equity prices and “risk-off” trades, driving rates lower,” he added.
Talk of a possible recession has grown louder in the past month in
Even as home prices rose to record highs last year, housing demand remained elevated given the lower interest rates. But the combined effect of high prices and rates surging this year to highs not seen since 2009 is now leaving a mark, according to Freddie Mac Chief Economist Sam Khater.
“Despite the recent moderation in rates, the housing market has clearly slowed, and the deceleration is spreading to other segments of the economy, such as consumer spending on durable goods,” he said in a press release.
In the past two weeks, various reports showed sales of both
Along with the drop in the 30-year rate, the average for 15-year mortgages similarly fell. The 15-year average clocked in at 4.31%, 12 basis points lower than 4.43% reported the previous week. One year ago, the 15-year rate stood at 2.27%.
The 5-year Treasury-indexed hybrid adjustable rate, though, increased for the 13th straight week, rising another 12 basis points to an average of 4.2%. Seven days earlier, the average came in at 4.08%, while in the same weekly period a year ago, the 5/1 ARM came in at 2.59%.