The average 30-year FRM and 5/1 ARM both declined by two basis points to close at 6.33% and 6.12% respectively.
Though it was expected that inflation could be restrained within acceptable limits in the coming months, levels are still high and are not proceeding along predictable lines. If inflation shows no signs of weakening and the pattern persists, the Fed may have to step in and increase short-term rates to contain it.
Mortgage rates have moved rather tentatively over the past weeks and are interestingly poised as they correspond to almost similar figures for the same period last year. With inflation still at levels that are too high for comfort, mortgage rates may rise by a basis point or two, but cannot be expected to fall much further.
Rob Thomos :rock: