FILE - A residential development under construction in Eagleville, Pa., on April 28, 2023. Homebuyers should get used to painfully high mortgage rates, despite a signal from the Federal Reserve Wednesday May 4, that it could finally pause its yearlong campaign of rate hikes. – Homebuyers should get used to painfully high mortgage rates, despite this week's signal from the Federal Reserve that it could finally pause its yearlong campaign of rate hikes.
“Any meaningful and sustained decline in mortgage rates will require further easing of inflation pressures and continued slowing of the economy,” McBride said. Shifts in the Fed’s benchmark lending rate don’t directly affect mortgage rates, but they do influence the yield on 10-year Treasury bonds, which lenders use as a guide to pricing home loans. That’s because higher rates push bonds prices lower, which then causes their yield to go up.
The average rate on a 30-year mortgage reached a two-decade high of 7.08% last fall after months of Fed rate hikes and stubbornly high inflation. This week, it averaged 6.39%, down slightly from last week, according to mortgage buyer Freddie Mac. A year ago, it averaged 5.27%.
Loans Loans Latest News, Loans Loans Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
Source: NBCNews - 🏆 10. / 86 Read more »