China Channels Bernanke With Assurances Evergrande Is Contained
For months in the runup to the 2008 financial crisis, banking heavyweights from Federal Reserve Chair Ben Bernanke on down said the turmoil in subprime mortgages would be “contained.”
May 27, 2021
U.S. Mortgage Rates Dip Back Below 3% as Borrowing Costs Seesaw
, Bloomberg News
(Bloomberg) -- Mortgage rates in the U.S. are back below 3%.
The average for a 30-year loan was 2.95%, down from 3% last week, Freddie Mac data showed Thursday.
Rates have seesawed in recent weeks, with investors looking for signs of inflation as the economy recovers from the pandemic. Historically low borrowing costs have fueled a housing rally over the past year, with a shortage of homes to buy amid intense demand for properties in the suburbs driving up prices.
Even with the increased buying power that comes with lower rates, many Americans are struggling to find properties they can afford. Sales of new homes declined in April by more than forecast, as the higher prices constrained demand.
Mortgage rates plummeted as the coronavirus roiled financial markets. The bottom came early this year at 2.65%. Rates then started ticking up, hitting a high of 3.18% on April 1.
©2021 Bloomberg L.P.
