Mortgage rates tumble to 4.99%, lowest in 3 months

Mortgage rates in the US slipped below 5% for the first time in almost four months, giving borrowers a reprieve after this year’s rapid surge.

The decline in rates may help some homebuyers who were priced out this year by the fastest rising borrowing costs in decades. The Federal Reserve’s campaign to curb inflation by driving up its benchmark rate is putting an end to the pandemic housing boom. Sales are now sinking and inventory is starting to climb.

A year ago, a buyer who put 20% down on a $390,000 home and financed the rest with a 30-year, fixed-rate mortgage at an average interest rate of 2.77% had a monthly mortgage payment of $1,277, according to numbers from Freddie Mac. In response to high inflation the Federal Reserve raised its benchmark interest rate by 75 basis points last week, the second hike of that size in as many months.

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