Mortgage Rates on the rise? Or are they? The answer will surprise you!!
With inflation running at 40-year highs, the Federal Reserve’s aggressive moves to rein it in have put upward pressure on mortgage rates. Earlier this month, the central bank raised its federal funds rate by a half-percentage point, the sharpest increase since 2000.
Minutes from the Federal Reserve meeting were released this week, indicating that two more hikes of a half-percentage point each are expected when it meets in June and July.
Mortgage rates have skyrocketed this year, outracing expectations. The 30-year fixed average went from 3.22 percent at the start of the year to 5.3 percent earlier this month, the fastest gain since 1994.
The 30-year fixed-rate average dropped to its lowest level in five weeks, falling to 5.1 percent. It was 5.25 percent a week ago and 2.95 percent a year ago.
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