Mortgage Rates Hit Lowest Level Since April — Will the Decline Continue?

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Mortgage rates have fallen under 5%, reaching their lowest level in four months. According to housing finance giant Freddie Mac, the average rate for a 30-year fixed-rate mortgage was 4.99% on Aug. 4. 2022, down from 5.30% last week. This week’s mortgage rate compares to 4.72% during the first week of April this year. While still much greater than the 2.77% rate from this time last year, the latest drop offers some relief to potential homebuyers impacted by rising rates and soaring home prices this year. “Mortgage rates remained volatile due to the tug of war between inflationary pressures and a clear slowdown in economic growth,” stated Sam Khater, Freddie Mac’s chief economist. “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.” The big question now is, which way will rates go from here? Rates have tumbled from a 13-year high of 5.81% in June, The Wall Street Journal reported. Mortgage rates are linked to the 10-year U.S. Treasury yield. The yield typically follows the direction of the Federal Reserve’s benchmark interest rate. The Fed raised interest rates by 0.75% last week....

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