Mortgage Rates Settling Down
I’ve got good news about mortgage rates. 30-year fixed rates have been in a relatively narrow range for more than just a few weeks with rates in the low sixes. Many “industry experts” foresee that we’ll be in the high fives before long and that we should stick in that range for a few months. While inflation is still high, it is finally showing signs that the rate of increase is slowing. As such, the Federal Reserve is looking at fewer rate hikes this year. I’ve said before, but I’ll say it again – the Fed Funds rate is not directly correlated to mortgage rates. It is likely for the Fed to raise rates and the 30-year doesn’t follow lock step. So after a year of nothing but bad news on mortgage rates, at least we have something to celebrate at this point.