By the end of this year, the 30-year fixed-rate mortgage could drop to 3.3%, which would put the most popular loan product near its lowest average since Freddie Mac began tracking such data 48 years ago.
Lawrence Yun, chief economist for the National Association of REALTORS, made the prediction after seeing the latest Labor Department report last week, which showed a slowing job market. “The economy is clearly weakening, and the employment conditions show a lagging indicator,” Yun says. “The soft job gains in August assures that the Federal Reserve will be cutting interest rates.”
