On Monday, Nerdwallet released the average mortgage rates in the country:
…the average interest rate on a 30-year fixed-rate mortgage dropped eight basis points to 5.555% APR. The average rate on a 15-year fixed-rate mortgage rose two basis points to 4.732% APR, and the average rate on a 5-year adjustable-rate mortgage rose six basis points to 4.431% APR, according to rates provided to NerdWallet by Zillow. The 30-year fixed-rate mortgage is 24 basis points lower than one week ago and 274 basis points higher than one year ago. A basis point is one one-hundredth of one percent. Rates are expressed as an annual percentage rate, or APR.
So rates have dropped a bit, and weirdly enough, they dropped after Wednesday’s June Consumer Price Index Report. So why is this happening? Honestly, no matter the research we review it seems like there’s very little consensus on the reason. Since inflation is still higher than expected, some people think, “A likely explanation is that investors believe the Federal Reserve might raise short-term interest rates so abruptly as to tip the economy into a recession. And when the economy shrinks in a recession, interest rates tend to go down.” We’ll see if thy are right after the Fed’s meeting on July 27th. Stay tuned!
What is one thing we’re certain of with all of this information? The market is changing and sometime soon we’ll see it switch from a Seller’s Market to a Buyer’s Market.
What are we seeing in the New Orleans Market? Check out our Monthly New Orleans Market Review which comes out the second Thursday of every month! Read the June Snapshot now!
If you have any questions about strategizing whether to buy now or later, please feel free to reach out to our team of Real Estate Advisors. We can help you make the wisest decision for you!
Questions? Reach out to one of our advisors for a chat!
Link to full Nerdwallet article: https://www.nerdwallet.com/article/mortgages/mortgage-interest-rates-forecast