By Arlenys Tabare
According to the latest report from Freddie Mac, at the end of the second week of April Mortgage rates in the United States fell to 6.30% from 6.37% amid tensions in the real estate market generated by the conflict in the Middle East, which has increased energy prices, triggering inflation to 3.3%.
In the analysis it was also known that The 15-year fixed mortgage rate fell from 5.74% to 5.65% since the previous week. In this regard, Sam Khater, Freddie Mac’s chief economist, highlighted in the report that “compared to a year ago, when interest rates stood at 6.83%, this represents a significant improvement for home buyers during what is typically the peak spring home buying season,” he said.
Although at the beginning of the year the outlook for the real estate market had improved with falling mortgage rates and an increase in inventory creating high expectations for spring sales, the development of the war in Iran generated greater economic uncertainty, pushing back future buyers.
For Anthony Smith, senior economist at Realtor.com, he mentioned that the market has seen some relief following a decline in the 10-year Treasury yield compared to last week, reflected in mortgage rates.
“However, the sustainability of this rate decline depends on whether the truce is maintained and becomes a more lasting solution. Until there is greater geopolitical clarity, mortgage rate volatility is likely to remain elevatedand any improvement could prove temporary,” Smith said.
The relief in the real estate market with the fall in mortgage rates was invented after a fifteen-day ceasefire between the United States and Iran that still remains fragile and can change at any time.
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