Are Mortgage Rates Going Lower?

It’s a bit unexpected for sure, but the national average mortgage rate is down to 5.22% for a 30-year fixed.*

That’s a pretty big drop considering that last week’s rates were in the 5.7-percent range.* There are a lot of contributing factors, one in particular is the market’s reaction to the negative GDP numbers posted for the last two quarters. The U.S. economy posted two consecutive quarters of negative GDP, which is technically a recession. The question now is how much farther are mortgage rates going to inch down and for how long.

 A subtle shift for home buyers 

While earlier this year saw a bidding war frenzy with too many buyers chasing too few homes, the tide seems to be shifting. Home inventories are starting to creep up as many exhausted buyers have hit the pause button. Nationally, the total number of housing units for sale in June was up 9.6% compared to May. Plus, with pandemic concerns easing more sellers are feeling more comfortable letting strangers into their homes. All this might indicate the market is stabilizing for the moment giving homebuyers a tad more leverage.

What are the best places to buy a home? 

Remote work seems to have changed everything. It’s estimated 22% of the workforce in the U.S. (36.2 million workers) will work remotely by 2025.

One of the biggest impacts of remote work is on where people are choosing to live. We’re not just talking about moving a few miles from cities to suburbs. Folks are packing up and moving to a better lifestyle. Wherever that state may be.

All information provided in this publication is for informational and educational purposes only, and in no way is any of the content contained herein to be construed as financial, investment, or legal advice or instruction. Guaranteed Rate does not guarantee the quality, accuracy, completeness or timelines of the information in this publication. While efforts are made to verify the information provided, the information should not be assumed to be error-free. Some information in the publication may have been provided by third parties and has not necessarily been verified by Guaranteed Rate. Guaranteed Rate its affiliates and subsidiaries do not assume any liability for the information contained herein, be it direct, indirect, consequential, special, or exemplary, or other damages whatsoever and howsoever caused, arising out of or in connection with the use of this publication or in reliance on the information, including any personal or pecuniary loss, whether the action is in contract, tort (including negligence) or other tortious action. 

* National average rates accurate as of 7/29/22 from Mortgage News Daily and are not advertised rates from Guaranteed Rate. 

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