Mortgage Rates Have Biggest Weekly Drop Since 2008

Mortgage rates just posted their biggest weekly plunge since the 2008 financial crisis while the red-hot housing market appears to be cooling off.

Mortgage rates rose quickly as the Federal Reserve began hiking interest rates to combat inflation, although last week, they steeply fell off. The average rate on a 30-year loan is now at 5.3%, down from 5.7% last week, Freddie Mac announced on Thursday.

The government-sponsored housing enterprise pointed out in a statement that concerns about a recession continue to percolate as the rate plunges.

“While the drop provides minor relief to buyers, the housing market will continue to normalize if home price growth materially slows due to the combination of low housing affordability and an expected economic slowdown,” the statement said. (Read more from “Mortgage Rates Have Biggest Weekly Drop Since 2008” HERE)

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