TPH - Long-term mortgages fall on banking volatility Fed commentary

2023-05-04 12:26:03 ET

Long-term mortgage rates fell on the back of banking volatility and commentary from the Federal Reserve, according to the Freddie Mac Primary Mortgage Survey.

30-year fixed-rate mortgages averaged 6.39% as of May 4, down from last week when they averaged 6.43% and higher than 5.27% a year ago.

15-year fixed-rate mortgages averaged 5.76%, up from 5.71% last week and 4.52% in the year-ago period.

"This week, mortgage rates inched down slightly amid recent volatility in the banking sector and commentary from the Federal Reserve on its policy outlook," Freddie Mac Chief Economist Sam Khater said.

"Interested homebuyers are acclimating to the current rate environment, but the lack of inventory remains a primary obstacle to affordability," Khater said.

"While lower mortgage rates will help with affordability, they won't solve for the lack of inventory on the market, particularly of existing homes. This lack of supply will continue to be the primary constraint on home sales through 2023," Mortgage Bankers Association's chief economist, Mike Fratantoni, said .

Notably, mortgage applications fell despite the rates going down, according to the Mortgage Bankers Association.

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