By Arlenys Tabare
According to Freddie Mac’s report during the closing of the third week of May, Reference 30-year mortgage rates in the United States increased again from 6.36% to 6.51% in the midst of economic uncertainty after the strong influence that the development of the war with Iran has had in recent months.
While Average 15-year fixed-rate mortgage rates rose from 5.71% to 5.85% during the same week. Both have been affected by the evolution of the yield on 10-year Treasury bonds, which as of Thursday, May 21, stood at 4.57% in response to inflation and geopolitical factors.
In this regard, Sam Khater, Freddie Mac’s chief economist, commented in the report that “as interest rates fluctuate, potential buyers should remember that by shopping around to find the best mortgage rate and getting multiple quotes, they can potentially save thousands of dollars,” he said.
It was expected that during the spring season the real estate market would gradually emerge from the adjustment it was in, not only due to higher mortgage rates, but also due to the lack of inventory that has skyrocketed home prices and curbed the enthusiasm of future buyers.
For his part, Anthony Smith, senior economist at Realtor.com, highlighted the great negative influence that the conflict in the Middle East has had on the market by having to reevaluate the economic prospects given the increase in energy prices that in recent weeks has accelerated the rise in inflation to more than 3%, so mortgage interest rates are only adjusting to the consequences of the war.
Smith also mentioned the changes in the leadership of the FED: “There is a transition in the leadership of the Federal Reserve this week, but given that the chair is only one vote among many, and that a rebound in inflation is likely to reinforce caution among FOMC members regardless of leadership, that situation is unlikely to significantly influence interest rates,” he noted.
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