The 30-year fixed-rate mortgage (FRM) averaged 4.99% as of August. 4: down 0.8% from last week. The news marks the first time since April that mortgage rates have dipped below 5%.

Still, it’s high compared to one year ago when the 30-year FRM averaged just 2.77%.

“Mortgage rates remained volatile due to the tug of war between inflationary pressures and a clear slowdown in economic growth,” said Sam Khater, Freddie Mac’s Chief Economist.

Commenting on the sudden fluctuation, Freddie Mac Chief Economist Sam Khater said that mortgage rates have remained volatile amidst an economic slowdown. “The high uncertainty surrounding inflation and other factors will likely cause rates to remain variable,” he said. “Especially as the Federal Reserve attempts to navigate the current economic environment.”

On June 27, the Fed raised interest rates by 0.75% for the second time this summer.

Like the 30-year, the 15-year FRM also declined, averaging 4.26% on Aug. 4. That’s a week-over-week decline of 0.6% and a year-over-year increase of 2.16%.