Mortgage rates fall as fears about the US economy loom
Mortgage rates dropped last week as fears grow that the US economy is entering a recession.
The 30-year fixed-rate mortgage averaged 5.30% in the week ending July 28, down from 5.54% the week before, according to Freddie Mac. That is still significantly higher than this time last year when it was 2.80%.
Rates rose sharply at the start of the year, hitting a high of 5.81% in mid-June. But since then, concerns about inflation and the possibility that the US economy may be entering a recession have made them more volatile.
The demand to buy a home continues to tumble as buyers face higher rates, record-high home prices, increased recession risk, and declining consumer confidence, said Sam Khater, Freddie Mac’s Chief Economist.
“It’s clear that over the past two years, the combination of the pandemic, record low mortgage rates, and the…
