US Mortgage Rates Fall to 5.13% With Signs That Inflation May Have Reached a Peak

By Patrick Clark
Bloomberg Investing
August 18, 2022
Category: Finance & Economics
Region: United States

US mortgage rates declined amid signs that inflation might have reached a peak. The average for a 30-year loan dropped to 5.13% from 5.22% last week, Freddie Mac said Thursday. This year’s run-up in mortgage rates has taken some of the froth out of the US housing market, slowing sales and easing bidding wars. It’s also pushed more buyers to cancel purchases and led homebuilders to slow construction starts. US inflation decelerated more than expected in July, which has eased some pressure on mortgage rates. “Inflation appears to be beyond its peak,” said Sam Khater, Freddie Mac’s chief economist. “Over the rest of the year, purchase demand likely will continue to drag, supply will modestly increase, and home-price growth will decelerate.” The housing slowdown has also sent ripples throughout the real estate industry, hitting mortgage lenders, homebuilders and other companies.

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