The Latest On Mortgage Rates
Mortgage rates have dipped again! After hitting a high around 8% in October, mortgage rates for a 30-year fixed loan are now back to the high 6s. This is a welcome change for the housing market and we’re beginning to see some more buyers out looking at homes. It hasn’t translated into a big increase in either mortgage applications or contracts written, but it is better than the alternative. Just as when rates ran up, the Fed hasn’t taken any specific action. Instead, this is the 10-year treasury bond reacting to geopolitics and economic data. It looks like the market expects the Fed to lower the Fed Funds rate sooner than expected. Personally, I’m not sure I agree since the Fed has indicated they may have to go higher. Several times over the past 18 months the market has read the tealeaves to believe a Fed slowdown or reduction was coming only to be proven wrong. We’ll see how it works out this time over the coming months.