Mortgage fees average 6.72% following a continuing Federal Reserve suspension
Mortgage rates fell this week after the Federal Reserve stabilized benchmark interest rates this week.
According to data from Freddie Mac, the average rate for a 30-year fixed mortgage was 6.72% until the week that closes Wednesday. The average last week was 6.74%. Meanwhile, the average 15-year fixed mortgage rate was 5.85%, down from 5.87%.
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“The 30-year fixed-rate mortgage showed little movement left in the same narrow range for four consecutive weeks,” Freddie Mac chief economist Sam Carter said in a statement. “Continued economic growth is a good for buyers and sellers, along with ease in home prices and rising inventory.”
Prices have been eased in some markets, but the mortgage rate of nearly 7% has kept the spring home buying season calm. Home contract signings fell to 0.8% in June from a month ago and 2.8% from the previous year. Contract signings declined in all regions of the country on a monthly and annual basis, except in the Northeast.
The trend appears to be continuing. Mortgage applications to buy homes fell 6% from the previous week, according to data from the Mortgage Bankers Association (MBA). Refinance applications fell by 1%, but 30% higher than last summer.
“The MBA’s forecast is that the 30-year fixed mortgage rate will move slightly to just 6.5% over next year. The long-term rate will continue to be affected by the large deficits and debts, as well as the increased Treasury issuance to fund those deficits.
read more: How to find the lowest mortgage fees at the moment
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