US mortgage rates fell for the second straight week, according to Freddie Mac’s Primary Mortgage Market Survey. The 30-year fixed rate loan fell two basis points week over week to 2.94%.
“Since the last high in April, mortgage rates have fallen nearly a quarter percent and stayed below 3% for the past month,” said Sam Khater, Freddie Mac’s chief economist. “Low prices offer homeowners the opportunity to cut their monthly payments by Refinancingand our recent research shows that many borrowers, particularly Black and Hispanic borrowers who could benefit from refinancing, are still not pursuing the option. “
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While the low mortgage rate environment is good news for homeowners and borrowers, it does not mean that it is sustainable because of the rising rate of inflation in the economy. According to the US Department of Labor, consumer prices reached their highest level in 13 years in April.
“The low mortgage rate environment has been a boon for the real estate market, but may not last long as consumer inflation has accelerated at its fastest pace in more than twelve years and may lead to higher mortgage rates in the summer,” said Khater.
The 15-year fixed-rate mortgage also fell from last week’s average of 2.30% to 2.26%, while the 5-year hybrid, variable rate and Treasury index mortgage fell 11 basis points to 2.59% .