According to Freddie Mac, for the week ending May 6th, mortgage rates reached their lowest levels since this past February. In addition, this marked the third consecutive week where we have seen a decline in rates. The current low interest rates come a bit surprising to Matthew Speakman, an economist at Zillow. Speakman notes, “The stability in rates over the past weeks comes in spite of the fact that Treasury Secretary Janet Yellen suggested this week that interest rates may need to increase to prevent the US economy from over-heating.”
So where are rates expected to go? Speakman offered that rates will be tested over the upcoming days. “April employment figures and inflation data, two key gauges of the economy’s path forward, are due this week, and stronger-than-expected readings of either – or both – reports will likely revert mortgage rates back upward.” With that being said, it appears now would be the perfect time for those who have not refinanced to cash in on the ultra-low interest rates while they remain at their current levels.