Mortgage rates stayed flat at 6.76% for the week ending May 8, as the Federal Reserve's decision to maintain its key interest rate drew investor scrutiny. Compared to last yearâs 7.09%, current rates have encouraged a rise in purchase applications. The Fed recognized potential risks like higher unemployment and inflation, justifying its steady policy stance. Experts predict that without significant economic changes, mortgage rates are likely to remain in the high-6% range, compounded by home price issues and economic uncertainty affecting buyers.
"Mortgage rates stayed flat this week," says Sam Khater, Freddie Mac's chief economist. "At this time last year, the 30-year fixed-rate mortgage was 30 basis points higher and purchase applications were declining."
Looking ahead, the Fed's wait-and-see approach is likely to keep mortgage rates at a high-6% in the near term, unless major policy developments or economic shifts occur, such as notable outcomes from the upcoming U.S.-China trade talks scheduled for this weekend.
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