Freddie Mac reported mortgage interest rates down as of May 2 from the prior week. The 30-year fixed rate slipped 6 basis points to 4.14%, the 15-year fixed rate was down 4 basis points to 3.60%, and the 5/1-year ARM was down 9 basis points to 3.68%.
The first reading for May was the same as the 4.14% for a 30-year fixed rate mortgage in April, while the 15-year rate was essentially the same at 3.61% in April. The 5/1-year ARM rate was down 7 basis points from 3.75% in April.
Mortgage interest rate are probably now on new downward trend. The May 2 week-over-week change was well within normal variation. Rather, it is likely that rates will hover near their present levels for a time while the FOMC is on hold. At the current time, rate are the lowest since early in 2018 and should provide some incentive for consumers to enter the housing market will rates improve home affordability.
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