You can still get a good deal, historically speaking - especially if you’re a borrower with strong credit. So if you haven’t locked a rate yet, don’t lose too much sleep over it. Whatever happens, interest rates are still below historical averages.ĭating back to April 1971, the fixed 30-year interest rate averaged around 7.8%, according to Freddie Mac. Many experts and industry authorities believe they will follow a downward trajectory in 2023. MonthĪfter hitting record-low territory in 20, mortgage rates climbed to a 14-year high in 2022. The average 15-year fixed mortgage rate also surged from 5.75% to 5.97%. The 30-year fixed rate increased from 6.39% on May 18 to 6.57% on May 25. Mortgage rates grew for the second week in a row, as inflation continues running too high. Of course, rates could rise on any given week or if another global event causes widespread uncertainty in the economy. Additionally, the likelihood of a recession has many experts believing mortgage interest rates will move within a tighter range compared to the spikes we saw in early 2022. The average 30-year fixed-rate mortgage more than doubled within the course of the year.Īs inflation gradually cools, the size of the Fed’s rate hikes are coming down. Mortgage interest rates forecast next 90 daysĪs inflation ran rampant in 2022, the Federal Reserve took action to bring it down and that led to big interest rate growth. But for May, I expect rates to be pretty similar to where they were in April.” It still seems most likely that rates will gradually decline over the course of the year once the Federal Reserve feels that inflation is under control and stops raising the Fed Funds rate. If inflation rises, or the economy shows unexpected strength, rates will probably end up at the high end of this range or slightly higher. If inflation numbers continue to decline, consumer spending doesn’t spike and the jobs market doesn’t show explosive growth, rates will probably come in at the lower end of that range. It seems likely that rates in May will likewise stay in a fairly tight band somewhere between 6.25-6.75%. “Mortgage rates have largely been moving sideways for the past month as the market sorts out what the fallout from recent bank problems might be, and what the implications are for future rate hikes from the Federal Reserve. Rick Sharga, president and CEO at CJ Patrick Company Of course, interest rates are notoriously volatile and could tick back up on any given week.Įxperts from CJ Patrick Company, First American, the National Association of Realtors, and others weigh in on whether 30-year mortgage rates will climb, fall, or level off in May. With the economy likely heading into a recession, it’s possible we’ve already seen the peak of this rate cycle. ![]() However, with duress permeating the financial market and helping to ease inflation, the Fed is expected to make smaller rate hikes for the rest of 2023 - and potentially stop making them altogether. The range can be largely attributed to the Federal Reserve’s ongoing fight against inflation, juxtaposed with uncertainty in the banking sector sparked by Silicon Valley Bank’s collapse. 2 and climbed up to 6.73% on March 9, according to Freddie Mac. In the first quarter, the average 30-year fixed rate went as low as 6.09% on Feb. ![]() Mortgage rates fluctuated significantly to open 2023. This is coming on top of ongoing credit tightening due to banking sector weakness and comments from Federal Reserve Bank officials reiterating the view that inflation may still be too high,” said Orphe Divounguy, senior macroeconomist at Zillow Home Loans. “Mortgage rates moved higher this week as uncertainty over a potential US debt default is causing investors to pull back. The average 30-year fixed rate mortgage (FRM) rose from 6.39% on May 18 to 6.57% on May 25, according to Freddie Mac. 17 min read Mortgage rate forecast for next week (May 29-June 2)ĭebt ceiling unrest led to a big jump in interest rates this week.
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