Mortgage Interest Rates Drop for Second Week as Stock Market Declines
Current Mortgage Rate Overview for Week Ending Feb. 27
Mortgage rates declined for the second consecutive week as stock market performance weakened. Here are the key rate changes:
30-year fixed-rate mortgage:
- Currently averaging 6.65% APR
- Decreased 14 basis points from previous week
15-year fixed-rate mortgage:
- Currently averaging 5.87% APR
- Decreased 16 basis points from previous week
5-year adjustable-rate mortgage:
- Currently averaging 7.18% APR
- Decreased 1 basis point from previous week
Market Factors Affecting Rates:
- S&P 500 declined approximately 188 points (3%) between Feb. 19-26
- Stock market drops typically correlate with falling mortgage and bond yields
- January PCE price index (key inflation indicator) release expected Friday
- Potential rate increases may occur if inflation shows signs of rebounding
March 2024 Rate Forecast:
- Rates likely to remain stable through mid-March
- Possible increase after Federal Reserve meeting on March 19
- Rate movement will depend on Fed's signals regarding potential rate cuts in latter half of 2024
Woman next to house mortgage text
Homebuyers should monitor both inflation data and Federal Reserve announcements for potential impacts on mortgage rates in the coming weeks.
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