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Mortgage rates this week
Mortgage rates fell the week ending May 16, as the latest inflation numbers were in line with market expectations.
The 30-year fixed-rate mortgage averaged 6.98% APR, down five basis points from the previous week's average, according to rates provided to NerdWallet by Zillow. A basis point is one one-hundredth of a percentage point.
The 15-year fixed-rate mortgage averaged 6.21% APR, down four basis points from the previous week's average.
The 5-year adjustable-rate mortgage averaged 7.9% APR, down two basis points from the previous week's average.
The Bureau of Labor Statistics released the latest Consumer Price Index on Wednesday, which showed the rate of inflation moderating slightly from 3.5% in March to 3.4% in April. While that's still markedly higher than the Federal Reserve's 2% goal, it's a potentially encouraging sign.
If inflation continues to slow, the likelihood of the Federal Reserve cutting interest rates should increase. Mortgage rates could then head downward in anticipation of a lower rate environment.
Mortgage loans from our partners
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Mortgage loans from our partners
on New American Funding
New American Funding
on New American Funding
May mortgage rate forecast
Mortgage rates could remain above 7% in May as inflation resists the Federal Reserve's efforts to bring it under control.
What other forecasters predict
Fannie Mae, the Mortgage Bankers Association and the National Association of Realtors all predict that mortgage rates will fall over the next 12 months. Their forecasts have the 30-year fixed-rate mortgage dropping to below 6.5% in the first quarter of 2025, compared with an average of 6.75% in the first quarter of this year.
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