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Freddie Mac believes that the mortgage rates that have climbed by three basis points could come down near record lows shortly.
Freddie Mac’s chief economist, Sam Khater, stated in a press release that the “Mortgage rates set several record lows over the last few months and have remained low into September. While there is room for rates to decrease even more, higher home prices and low inventory could potentially stifle the high demand that we’ve been seeing.”
For the week closing on 24 Sep, the 30-year fixed-rate mortgage sat at an average of 2.9%. This is three basis points up from last week. On the year-to-year chart, the drop is 0.74% or nearly 20% of its standing. The 15-year fixed-rate mortgage sitting at 2.35% a week prior has closed at 2.4% on Sep 24. It sat at 3.16% a year ago.
Zillow’s economist Matthew Speakman said in a commentary-cum-release that “despite a healthy dose of news, economic data and central bank statements that prompted a whirlwind week in stock markets. Pandemic-related uncertainty and muted inflation expectations have helped keep Treasury yields — which generally dictate mortgage rates — at very low levels and in a historically tight range for the last month, even as other financial markets have seen significant ups and downs. Unsurprisingly, mortgage rates have followed a similar pattern lately.”
Speakman believes that despite the Federal Housing Finance Agency’s move to go with an adverse impact fee for refinancings, the mortgage rates could dip further.