Mortgage rates have been fluctuating wildly in recent weeks, as investors try to gauge the impact of hot economic conjecture on the housing market.
The average rate for a 30-year fixed mortgage was 5.5% on Friday, up from 5.2% a week ago, according to data from Freddie Mac. The average rate for a 15-year fixed mortgage was 4.7%, up from 4.5% a week ago.
The recent increase in mortgage rates is being driven by a number of factors, including rising inflation, which is putting upward pressure on interest rates, and the Federal Reserve's plan to raise interest rates in an effort to combat inflation.
The Federal Reserve is expected to raise interest rates by 50 basis points at its next meeting on June 15. This would be the largest rate hike since 2000.
The increase in mortgage rates is making it more expensive to buy a home. This could cool the housing market, which has been red hot in recent years.
However, it is also possible that the housing market will remain strong, even with higher mortgage rates. This is because there is still a lot of demand for homes, and there is a limited supply of homes on the market.
It is too early to say what the impact of the recent increase in mortgage rates will be on the housing market. However, it is clear that the market is volatile, and it could go either way.
Homebuyers who are considering buying a home should shop around for the best mortgage rate. They should also be prepared to make a larger down payment, as this will help to lower their monthly mortgage payment.
Investors who are interested in the housing market should also be prepared for volatility. The market could cool off, but it could also remain strong. It is important to stay up-to-date on the latest economic news and to make investment decisions based on your own risk tolerance.