The 30-year US mortgage rate drops for the 3rd week to 2.88% on average | national
WASHINGTON (AP) – Mortgage rates were mixed this week. The 30-year benchmark loan fell for the third week in a row amid lingering concerns about the recent spike in inflation.
Mortgage buyer Freddie Mac reported on Thursday that the 30-year mortgage average fell to 2.88% from 2.90% last week, down from its high this year of 3.18% in April. The key rate stood at 2.98% a year ago.
The rate on a 15-year loan, a popular option among homeowners refinancing their mortgages, edged up to 2.22% from 2.20% last week.
Economists at Freddie Mac expect economic growth to gradually push mortgage rates higher in the second half of the year.
Federal Reserve Chairman Jerome Powell addressed concerns about inflation, which has increased in recent months as the recovery from the pandemic recession strengthens. He suggested in testimony to a House of Representatives committee on Wednesday that inflation “will likely remain high” in the coming months before “moderating”. At the same time, Powell did not signal any imminent changes in the Fed’s ultra-low interest rate policies.
In the latest sign of intensifying inflationary pressures, the government announced on Tuesday that prices paid by American consumers rose in June from the highest level in 13 years. This is the third month in a row that inflation has jumped.
Further evidence arrived Thursday that the economy and labor market are rebounding quickly: The Labor Department reported that the number of Americans claiming unemployment benefits last week reached its lowest level since the ‘last year. The weekly tally showed that jobless claims fell by 26,000 to 360,000.
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