For the week of May 5th-May 11th, 30-year and 15-year fixed rates declined as a result of a decline in CPI, which indicates that inflation is still a concern, however rate increases by Fed have slowed inflation rates to the lowest level since April 2021. (Details in the table below). “This week’s decrease continues a recent sideways trend in mortgage rates, which is a welcome departure from the record increases of last year,” said Sam Khater, Freddie Mac’s Chief Economist. “While inflation remains elevated, its rate of growth has moderated and is expected to decelerate over the remainder of 2023. This should bode well for the trajectory of mortgage rates over the long-term.” Per the CME Group, Economists are forecasting a 97.4% chance that Federal Reserve will keep rates the same at the June 14th FOMC meeting.
Per Black Knights Production Metrics 83.30% of all Mortgage Volume for the week was Purchase transaction, followed by 14.23% Cash out and 2.47% rate and term refinance.
For the week 5.60% of all Retail loan production were Government Loans (FHA, VA), while 44.39% were Conventional and Non-Conforming loans.
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Interest rate and annual percentage rate (APR) are based on current market conditions as of 05/11/2023, are for informational purposes only, are subject to change without notice and may be subject to pricing add-ons related to property type, loan amount, loan-to-value, credit score and other variables. Estimated closing costs used in the APR calculation are assumed to be paid by the borrower at closing. If the closing costs are financed, the loan, APR and payment amounts will be higher. Contact us for details. Additional loan programs may be available. Accuracy is not guaranteed, and all products may not be available in all borrower's geographical areas and are based on their individual situation. This is not a credit decision or a commitment to lend. actual interest rate, APR, and payment may vary based on the specific terms of the loan selected, verification of information, your credit history, the location and type of property, and other factors as determined by Prosperity Home Mortgage, LLC. Not available in all states. Rate is as of 05/11/2023 and is subject to change at any time without notice. Opinions, estimates, forecasts, and other views contained in this document are those of Freddie Mac’s economists and other researchers, do not necessarily represent the views of Freddie Mac or its management, and should not be construed as indicating Freddie Mac’s business prospects or expected results. Although the authors attempt to provide reliable, useful information, they do not guarantee that the information or other content in this document is accurate, current, or suitable for any particular purpose. All content is subject to change without notice. All content is provided on an “as is” basis, with no warranties of any kind whatsoever. Information from this document may be used with proper attribution.