{"id":20882,"date":"2022-08-12T14:49:54","date_gmt":"2022-08-12T14:49:54","guid":{"rendered":"http:\/\/www.anthonydidonato.net\/wordpress\/?p=20882"},"modified":"2022-08-12T14:49:56","modified_gmt":"2022-08-12T14:49:56","slug":"mortgage-rates-dip-below-5-buyers-get-a-second-chance-opportunity","status":"publish","type":"post","link":"https:\/\/www.anthonydidonato.net\/wordpress\/mortgage-rates-dip-below-5-buyers-get-a-second-chance-opportunity\/","title":{"rendered":"Mortgage Rates Dip Below 5%; Buyers Get \u2018A Second-Chance Opportunity\u2019"},"content":{"rendered":"\n

Mortgage Rates Dip Below 5%; Buyers Get \u2018A Second-Chance Opportunity\u2019<\/p>\n\n\n\n

After weeks of escalating borrowing costs, home buyers are getting a second chance to lock in lower rates. The 30-year fixed-rate mortgage fell to an average just below 5% for the week ending Aug. 4, Freddie Mac reports.<\/p>\n\n\n\n

With rates dipping in recent days, mortgage applications are increasing for the first time in five weeks, the Mortgage Bankers Association reported this week. Applications for a home purchase increased 1% last week following weeks of declines as home buyers and refinancers got spooked by higher mortgage rates.<\/p>\n\n\n\n

Will the latest lower rates stick around? \u201cMortgage rates remained volatile due to the tug of war between inflationary pressures and a clear slowdown in economic growth,\u201d says Sam Khater, Freddie Mac\u2019s chief economist. \u201cThe high uncertainty surrounding inflation and other factors will likely cause rates to remain variable, especially as the Federal Reserve attempts to navigate the current economic environment.\u201d<\/p>\n\n\n\n

Last week, National Association of REALTORS\u00ae Chief Economist Lawrence Yun predicted that the Federal Reserve\u2019s decision to raise its short-term fed funds rate by 75 basis points was unlikely to do any further damage to mortgage rates<\/a>. \u201cThe mortgage and longer-term bond markets have settled down in recent weeks,\u201d Yun says. \u201cThe peak in mortgage rates may have already occurred. That\u2019s because oil and gasoline prices have been falling lately and, hence, will lessen broader inflationary pressures. Lower inflation means less aggressive interest rates by the Federal Reserve.\u201d<\/p>\n\n\n\n

Any decline in mortgage rates is likely relief to potential home buyers. \u201cThough still higher than a year ago, the current rate of under 5% means around a 12% reduction in monthly payments compared to when mortgage rates peaked at 6% just two months ago,\u201d Yun says. \u201cMortgage rates could soon turn upward but are unlikely to retouch the 6% mark. Any dip should be viewed as a second-chance opportunity.\u201d<\/p>\n\n\n\n

Freddie Mac reports the following national averages with mortgage rates for the week ending Aug. 4:<\/p>\n\n\n\n