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This week, it averaged 6.39%, down slightly from last week, according to mortgage buyer Freddie Mac. The average rate on a 30-year mortgage reached a two-decade high of 7.08% last fall after months of Fed rate hikes and stubbornly high inflation. Investors’ expectations for future inflation and global demand for U.S. That’s because higher rates push bonds prices lower, which then causes their yield to go up. Shifts in the Fed’s benchmark lending rate don’t directly affect mortgage rates, but they do influence the yield on 10-year Treasury bonds, which lenders use as a guide to pricing home loans. “There’s a chance mortgage rates come down, but I expect we’re still going to be in the 6% (range), though.” “There is still uncertainty in the economy,” said Lisa Sturtevant, chief economist at Bright MLS. More weakening could help bring down mortgage rates, though the reverse is also true. economic activity, stagnated in March for a second straight month.

Consumer spending, which accounts for 70% of U.S. The nation's GDP rose at just a 1.1% annual rate in the January-March quarter, down from 2.6% growth in the previous quarter. While inflation has fallen from a peak of 9.1% last June, it's still well above the Fed’s 2% target rate, despite signs that the economy is slowing. “Any meaningful and sustained decline in mortgage rates will require further easing of inflation pressures and continued slowing of the economy,” McBride said.