Mortgage rates could change in the coming weeks - here's why

Mortgage rates could change in the coming weeks - here's why

Mortgage interest rates could see considerable fluctuations in the coming weeks as investors analyze recent economic data.

The 30-year mortgage averaged 3.55% for the week ending February 3, unchanged from the previous week, FMCC Freddie Mac reported -1.04% Thursday. Meanwhile, the 15-year fixed-rate mortgage fell three basis points to an average of 2.77%. The 5-year Treasury-indexed adjustable mortgage rate averaged 2.71%, up to one basis point from the previous week.

 That mortgage rates have barely moved - at least based on the weekly average. But under the hood, the situation is already a bit more tumultuous.

"The apparent stability in weekly rates leads to some larger daily fluctuations in both mortgage rates and long-term rates, so home shoppers should be prepared for a little less lull than the weekly data suggests," said Danielle Hill, president of the company. Cheap at

Overall, the upcoming economic data could dampen interest rates, with economists expecting less than excellent numbers for January. "This recession reflects the economic impact of the omicron variant of COVID-19, which we believe will decline in the coming months," Sam Khater, chief economist at Freddy Mac, said in the weekly report. As expected, the economy rebounds in the spring and summer, Khater expects mortgage rates to rise again.

Meanwhile, economists warned that Americans might see higher volatility in interest rates in the upcoming weeks as new economic data is released. In addition, the ongoing geopolitical tensions surrounding Ukraine could create uncertainty among investors, affecting the direction of interest rate movement.

"These conditions can be particularly challenging for first-time homebuyers who are already struggling with rising rents that make it difficult to save on a down payment," she added.

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