Mortgage Rates Inch Up Again
Summary
The report, released Thursday, said fixed-mortgage rates averaged 5.66%, almost double what they were a year ago, amid the market’s renewed perception of a more aggressive federal monetary policy. George Ratiu, Realtor.coms manager of economic research, said financial markets continue to react to the Fed’s firm commitment to monetary tightening in order to bring inflation closer to the 2% mark. “This week’s remarks by Cleveland Fed President Mester — who is also a voting member of the FOMC — were a clear indication of the current policy direction,” Ratiu said. “This will challenge many first-time buyers, especially as wages are rising at just 5% per year.” Ratiu said the silver lining for those still looking for a home is that houses are staying on the market longer, pushing sellers to drop asking prices and leaving more room for negotiations. “As we move into the fall, and the pace of sales slows even further, some buyers may find discounts growing larger, offering opportunities that fit within their budgets,” he said.