Mortgage rates stayed lower this week, with the 30-year home loan falling to 2.93%. That rate has only topped 3% twice this year, in late February and April when 30-year mortgage rates reached 3.125%. As the economy improves, rates are expected to rise slightly. Inflation has not spooked the market, as government officials assure Americans that it is only temporary. Inflation is currently around 4.2%. The Federal Reserve is planning on raising interest rates sooner than planned, although it is still probably a year away. The Associated Press has the story:
30-year home loan falls to 2.93% from 2.96% last week
WASHINGTON (AP) — Mortgage rates were mostly lower this week as the economy continued to show signs of recovery from the pandemic recession and recent bursts of inflation were deemed temporary by federal policymakers.
Mortgage buyer Freddie Mac reported Thursday that the average for the key 30-year home loan fell to 2.93% from 2.96% last week. By contrast, the rate stood at 3.13% a year ago.
The rate for a 15-year loan, a popular option among homeowners refinancing their mortgages, edged up to 2.24% from 2.23% last week.
The Federal Reserve signaled Wednesday that it may act sooner than previously planned to start dialing back the low-interest rate policies that have helped spark a swift rebound from the recession but also have coincided with rising inflation. Fed Chairman Jay Powell said the inflation spikes of the past two months will likely prove temporary.
In the latest economic news, the government reported Thursday that the number of Americans seeking unemployment benefits rose last week for the first time since April, to 412,000.