Freddie Mac reports a jump in the 30-year fixed mortgage rate to 6.03% during the week ended April 24 from 5.88% the prior week, marking the first time in six weeks that mortgage rates rose above 6%. The 15-year fixed mortgage rate climbed during the same period, edging up to 5.62% from 5.40%. The five-year adjustable mortgage rate increased to 5.68% from 5.48%, while the one-year adjustable rate shot up to 5.28% from 5.10%. Freddie Mac chief economist Frank Nothaft attributes the gains to heightened inflationary concerns.
The Fed does meet later this week to consider dropping bank discount rates from 2.25% to 2%. While that rate cut is expected to happen by Thursday, we do not think thatNashville residential mortgage rates will be affected very much in the short term. Some lenders like Countrywide may see a little relief the following day, but we expect that rates will continue to climb shortly thereafter.
If you liked this post, you may also like: