Inflation Drops to 4.9%, Lower Rates Coming?

Average mortgage interest rates are slightly higher over the last 7 days.  The average 30 year fixed conventional interest rate went up .02% from 6.65% to 6.67%.

Below is the Green Home Loans Rate Average Sheet compared to the National Average.

The anticipated inflation report came out May 10th

The results were good but not as good as Barry Habib initially expected due to a variety of factors mentioned last week.

Inflation went from 5% to 4.9%.

Core Inflation (minus food and energy) went from 5.6% to 5.5%.

The most significant inflation figures we are seeing show shelter costs are no longer accelerating.

Shelter costs make up a big portion of inflation and the shelter costs have appeared to hit a ceiling and will likely start moving down.

Barry Habib predicts that inflation will drop to 3.5% to 3.7% by the mid July inflation report.

That would be HUMONGOUS for interest rates. 

See Instagram video below:

We expect almost all of our clients that are closing loans right now to refinance in 6 months.

We offer a Green Home Loans Loyalty Discount on rate pricing and fees so customers can take advantage.

As Barry Habib mentioned in the video, we expect the Real Estate market to heat up.

We are already seeing multiple offer situations today.  If rates drop deep into the 5%’s, it could be a repeat of the frenzy we saw in 2020 through mid 2022.

There is simply not enough inventory if demand dramatically increases. 

Multiple Offers Over List

Sellers Dictating All Terms

High Appreciation Due to Competition and Low Inventory

FHA and VA – Retail vs. Wholesale

One of the biggest differences we have seen from moving from a Retail Lender to a Mortgage Broker is the

extreme difference in rate and price, especially on FHA and VA Loans.  We can offer better rates on Conventional Loans too,

but the difference with Government Loans is staggering.

We were competing with a local Retail Lender this week on a FHA/VA Loan.

We beat the other lenders quote: 

1% Lower in Rate

With Lower Closing Costs

If you are sending your FHA/VA clients to a retail lender, I would strongly suggest getting a 2nd opinion from us.

I can 100% guarantee that your clients are not getting the best rate/payment/costs. 

You can always use our Free Mortgage Quote page to get a quick second opinion for you or your client.


Here is the audio of Keeping Current Matter’s May Monthly Market Report: 

Below are my favorite slides from the report.