Long-term U.S. mortgage rates slip for the first time in 4 weeks
The conflict in Ukraine will bring volatility to global markets, which will make movement in mortgage rates unpredictable.
(Bloomberg) — Mortgage rates in the US dropped for the first time this month.
The average for a 30-year loan was 3.89%, down from 3.92% last week, Freddie Mac said in a statement Thursday.
The decline follows two weeks of dramatic jumps. While still historically low, rates are up more than a full percentage point over the past five months. That has increased burdens for many Americans struggling to find homes they can afford as buyers battle over a critically tight supply of listings.
The conflict in Ukraine will bring volatility to global markets, which will make movement in mortgage rates unpredictable over the next few weeks.
“It’s all going to change today — the bond markets are already reacting,” said Brendan McKay, president of broker advocacy at the Association of Independent Mortgage Experts.
Over the longer term, increases in borrowing costs are expected as the Federal Reserve weighs hiking its benchmark lending rate in an effort to tame inflation.
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