Mortgage rates dropped to the lowest level since mid-February, a reflection of the waning optimism among investors about the state of the economic recovery from the pandemic.
The 15-year fixed-rate mortgage fell six basis points to an average of 2.2%, while the 5-year Treasury-indexed hybrid adjustable-rate mortgage slid by two basis point to an average of 2.52%. “While longer-term changes in rates are likely to be to the upside, the shift in the market’s outlook suggests that rates have little reason to move sharply higher anytime soon,” he added.
“Rates slipped as investors realized that the last Fed discussion may not have been as hawkish as was originally believed,” said Realtor.com chief economist Danielle Hale. She added that mortgage rates are likely to bounce around the 3% mark through August at least, given that the Fed is unlikely to lay out a timeline for when it will begin to wind down its stimulus efforts including the purchasing of mortgage-backed securities.
Crossing my fingers…taking a back seat for awhile on the quest for home ownership. Shark infested waters in the housing market now and I’m not up for bidding wars.
thanks