Aug 4, 2022 - Economy & Business

Mortgage rates fall below 5%

Data: Freddie Mac; Chart: Axios Visuals

If you're in the market for a house — maybe hurry to get your loan.

Driving the news: Mortgage rates are still high, but the rate on the 30-year just saw its steepest weekly drop since March 2020, and is now below 5%.

  • It was as high as 5.81% on June 23.

What's up: Markets got a little cocky believing the Federal Reserve's steep rate hike days were waning, as Axios' Neil Irwin wrote.

  • That sent Treasuries lower — and mortgages followed.

But, but, but: The respite may not last.

  • Mortgage rates will keep bouncing around for a while, said Mike Fratantoni, chief economist at the Mortgage Bankers Association. "I think we're going to continue to be in this unsettled condition until we get a clear move downward on inflation."
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