Mortgage Rates Recover After Downbeat Data
mortgage market has seen some volatility in recent weeks, as investors reacted to mixed signals from economy and Federal Reserve. Last week, mortgage rates fell sharply after a disappointing jobs report and a dovish statement from Fed. However, this week, mortgage rates bounced back as some positive data on inflation and consumer spending boosted market optimism.
According to the latest data from Freddie Mac, average rate for a 30-year fixed-rate mortgage rose to 3.18% this week, up from 3.08% last week. average rate for a 15-year fixed-rate mortgage also increased to 2.45%, up from 2.34% last week. average rate for a 5/1 adjustable-rate mortgage remained unchanged at 2.84%.
rise in mortgage rates reflects an improving outlook for U.S. economy, as more people get vaccinated and businesses reopen. Fed has signalled that it will keep its ultra-low interest rate policy and bond-buying program in place until economy reaches its goals of full employment and stable inflation. However, some analysts expect that Fed will start to taper its bond purchases later this year or early next year, which could put upward pressure on mortgage rates.
Despite recent fluctuations, mortgage rates are still near historic lows, making it an attractive time for homebuyers and homeowners to lock in a low rate. However, borrowers may face some challenges in finding ir dream home, as housing market remains tight with low inventory and high demand. Home prices have soared in many areas, making affordability a concern for some buyers.
If you are looking to buy or refinance a home, it is important to shop around for best mortgage rate and terms for your situation. You can compare offers from multiple lenders online or with help of a mortgage broker. You can also use online tools and calculators to estimate your monthly payments and closing costs. By doing your homework, you can save money and find best mortgage for your needs.