That’s all we can say to the lower mortgage rates that breezed by in May. Mortgage rates moved notably higher over the past week. The prime 30-year fixed-rate conventional loan led the brigade. It reclaimed the 4.625%-to-4.75% range it had abandoned for lower terrain last month.
Traditionally, mortgages in the U.S. are financed by banks that also operate other lines of business, like offering deposit accounts and insurance products. But today, the American homebuyer is anything but traditional, and they are looking to lenders other than banks to fill the gap. Fortunately, financial institutions continue to create innovative mortgages that fit the diverse needs of borrowers, rather than forcing consumers to conform to rigid standards. The end result is more people with the financing to afford the home they need, rather than being shut out of homeownership entirely.
Mortgage rates dropped, and they dropped meaningfully this past week.
The rate range on the prime 30-year fixed-rate conventional mortgage dropped to 4.5%-to-4.625%. It had been ensconced in a range 13-basis-points higher for the past month. Borrowers got a reprieve.