Mortgage rates fall below 5% for the first time since April

Credits: Freddie Mac; Chart: Axios Visuas

If you’re in the market for a house — maybe hurry up to get your loan.

News Movement: Mortgage rates are still high, but the 30-year rate just posted its steepest weekly drop since March 2020 and is now below 5%.

  • It reached 5.81% on June 23.

What’s happening: The markets got a little cocky believing the Federal Reserve’s rate hike days are waning, as Axios’ Neil Irwin writes.

  • This drove down government bonds and mortgages followed.

But, but, but: Rest may not last.

  • Mortgage rates will continue to rise for some time, said Mike Fratantoni, chief economist at the Mortgage Bankers Association. “I think we’re going to continue to be in that volatile state until we get a clear downward move on inflation.”

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