Mortgage rates for fixed thirty year mortgages dropped for the second week in a row; however, industry experts say rates will resume their rise as the Fed raises interest rates again to battle inflation. According to a survey of national mortgage lenders interest rates fell to 6.26% this week, down from 6.28% the previous week. This is the interest rate for a traditional thirty year fixed mortgage. Industry experts state this decline is due to the markets unease over the state of the economy.
Mortgage rates are dropping slightly as the markets react to inflation and the overall state of the economy according to Freddie Mac. Many experts think the drop in rates will be short-lived as the Federal Reserve resumes raising short term interest rates in a futile attempt to slow the US economy.
As for 15 year fixed interest rates a hot choice for homeowners refinancing their homes, rates average 5.81% this week. This rate remains unchanged from the previous week. One year adjustable rate mortgage loans (ARM) crept up to 5.16% from 5.14% the week before. Five year hybrid mortgages average 5.76%; these ARM loans were at 5.75% the week before.