The Federal Reserve said Wednesday it will keep its benchmark interest rate near zero despite signs the economic recovery is well underway. Fed officials did indicate that rate hikes could come as soon as 2023.
Freddie Mac’s Chief Economist Sam Khater said on Thur, “Mortgage rates continued to drift down as markets concur with the view that inflation increases are temporary.” Purchase demand has decreased the last few months, primarily due to high home prices. “With inventory tight, the slowdown in demand has yet to impact prices, meaning the summer will likely remain a strong seller’s market.” said Khater.
Total loan application volume rose 4.2% last week from the previous week, according to the Mortgage Bankers Association’s seasonally adjusted index. Refinances led the gains, rising 6% for the week. They were still 22% lower than before because so many borrowers already refinanced last fall, when rates hit record lows.
The Fed will be purchasing up to $4.924B in mortgage-backed-securities today.
Continual floating of most files and closely monitoring the markets are recommended.
Daily rate based on: SFR/Primary/LTV60/FICO 780/Purchase
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