Mortgage Rates Remained Elevated in May

According to Freddie Mac, the average 30-year fixed-rate mortgage increased by 7 basis points (bps) in May 2024, reaching 7.06%, up from 6.99% the previous month. This represents a 64 bps increase from the previous year, when it stood at 6.34%. The 15-year fixed-rate mortgage also saw an increase, rising 8 bps from April 2024, and 54 bps compared to May 2023.

As of the week ending June 7, 2024, the latest data shows a slight easing in mortgage rates, with the 30-year mortgage at 6.99% and the 15-year mortgage at 6.35%. On the other hand, the average 10-year Treasury yield decreased slightly by 6 bps after a sharp increase between March and April.

Per the NAHB forecast, we expect 30-year mortgage rates to stay elevated at around 6.66% at the end of 2024 and eventually to decline to under 6% by the end of 2025. The NAHB outlook is for the federal funds rate to be cut at the December Federal Reserve meeting and six more rate cuts in 2025.


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