The pandemic, Russia’s illegal invasion of Ukraine, and problems in the supply chain all around the world had devastating effects on the economies of many countries. Although world-leading countries, such as the United States, have better economies, their citizens still suffer the consequences of these events.
Without a doubt, one of the most debatable topics these days is the mortgage rate. Only a year ago, a citizen of the US could enjoy a 3.14% mortgage rate for 30-year loans. However, as of April 2024, the same person is charged with a 5.22% mortgage rate for the same loan. Just a month ago, the interest rate was under 5% as well.
If you are planning to buy a house with a mortgage, you might be wondering what the mortgage rates will be in the near and long term. We have shared the opinions and forecasts of several experts to provide you with a better insight.
What Are the Current Mortgage Rates in May 2024?
Below, you can find the current mortgage rates available in May. Please note that the list provides the actual mortgage rates as of May 5.
- 5/1 ARM Interest Rate – 3.78%
- 30-year Jumbo Interest Rate – 5.51%
- 15-year Fixed Interest Rate – 4.79%
- 30-year Fixed Interest Rate – 5.60%
Although we are almost at the beginning of May, mortgage interest rates have already boomed, and it seems like the trend will continue until the end of the month.
Mortgage Rates in May Reached the Highest in 13 Years
May is considered the homebuying season, and many people tend to visit plenty of houses and choose their new living space. However, if the forecasts of experts are accurate, you may want to think twice before you decide to buy a house.
Bankrate Chief Financial Analyst, Greg McBride, forecasted the May mortgage rates at 5.5% for 30-year fixed loans. However, the rates had already exceeded this forecast on the fifth day of the month. On the other hand, Greg McBride is the analyst who did the best forecast. The forecasts of all other analysts have already been exceeded.
John Thomas, who forecasted a 5.75% interest rate for a 30-year mortgage loan, is still in the competition, and he was accused of being very pessimistic about the future of the mortgage market.
Mortgage Forecasts for the End of 2024
On the other hand, most experts and associations are pretty optimistic about mortgage rates for the end of the year. They all believe that interest rates will start to decrease after the middle of the year and recommend buyers be patient. Considering their failed forecasts, it is all up to you to trust them or not.
According to the Mortgage Bankers Association, 30-year fixed interest rates will fall back to 4.8% at the end of 2022. Besides, NAR’s Yun forecast includes a 5.3% to 5.5% 30-year fixed interest rate at the end of the year.
On the other hand, Matthew Speakman, who is a senior economist at Zillow, believes that there is no reason to expect a decrease in interest rates in the near period, especially when we consider the competing dynamics in the market.
As you might already notice, there are pretty optimistic and pessimistic forecasts about the future mortgage interest rates in the United States. The only thing we know for sure is that almost all May mortgage interest rate forecasts failed just at the beginning of the month.
It seems like the effects of the pandemic, supply chain problems, and wars going on in different parts of the world will continue to have a major influence on the United States economy.