Falling Mortgage Rates Might Not Help Homebuyers

Mortgage rates continued to decline last week, but Realtor.com reports that inaccurate perceptions of mortgage requirements may be preventing homebuyers from entering the buying field.

The 30-year fixed-rate mortgage averaged 3.82% in the May 30 week, down from 3.99%, Freddie Mac said Thursday. It was the lowest level since September 2017 for the popular product, and its sixth-straight weekly decline.

The 15-year fixed-rate mortgage averaged 3.28%, down from 3.46%. The 5-year Treasury-indexed hybrid adjustable-rate mortgage averaged 3.52%, down 8 basis points.

Freddie Chief Economist Sam Khater calculates that most mortgages taken out in 2018 are now eligible to be refinanced. But the favorable climate for rates may be of little help to Americans in the housing market. Aside from the usual concerns about whether there will be any properties available for those who want to buy, new research shows that most consumers have little idea about what’s involved in getting a mortgage.

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