I expect mortgage interest rates to fall .5% over the next couple of months.
There’s very little demand for mortgages. Ergo, the price of mortgages aka the interest rate, will feel pressure to drop.
Overall, the economic news for America is grim.
Mortgage rates in the U.S. continue to fall, following the trend of home prices, consumer confidence and manufacturing.
This marks the seventh straight week of decreases in fixed rates for both 30-year and 15-year loans, according to Freddie Mac’s weekly mortgage report. Every week, Freddie Mac officials calculate average mortgage rates by compiling rates from lenders across the U.S. on Monday through Wednesday.
-The 30-year fixed average was 4.55 percent, down from 4.6 percent last week. One year ago, the average was 4.79 percent.
-The 15-year fixed average was 3.74 percent, down 3.78 percent last week. It was 4.2 percent a year ago.
This week’s mortgage rates followed the path of U.S. Treasury yields, which trended down this week. Also influencing rates are falling consumer confidence and manufacturing, said Frank Nothaft, Freddie Mac’s chief economist.