Mortgage Rates Recover Slightly But Remain Elevated

Today's mortgage rate recap is largely similar to yesterday's--not because the same things happened, but rather because the bigger stories and bigger movements had already taken place by yesterday.  Today was more of an afterthought in terms of movement even if there are one or two potentially important takeaways. Let's talk about the movement first.  It was modestly friendly, but not too big.  To put things in perspective, yesterday's rates were the highest in more than a month.  Today's were a close second.  The average lender remains in the mid 6% range for a top tier conventional 30yr fixed scenario. How about those important takeaways?  Fair warning: this may be a bit abstruse for those who just want to know what rates did today.   Today's takeaway is that the members of the Federal Reserve (aka "the Fed") are as unified as ever when it comes to the belief that the market is too optimistic about a potential drop in inflation.  One prominent Fed speaker even mentioned that the Fed's policy stance would need to remain restrictive for "a few years" and that current policy was just barely getting into restrictive territory. That's a simple and sobering way to understand the Fed's mindset.  They'd rather create a bit of economic weakness than go easy on the fight against inflation.  As ever, we'll have to take them at their word that they'll ease up if the inflation and economic data suggest the fight is over.  Until then, rates will require a lot of convincing from data/inflation before making any major progress toward lower levels.  
http://dlvr.it/Sj7g4J

Comments

Post a Comment

Popular posts from this blog

Get Ready for Smaller, More Affordable Homes Have you been trying to buy a home, but higher mortgage rates and home prices are limiting your options? If so, here’s some good news, smaller, more affordable homes are on the way. In some ways, smaller homes are already here. When the pandemic hit, the meaning of home changed. People needed the space their home provided not only as a place to live, but as a place to work, go to school, exercise, and more. Those who had that space were more likely to keep it. And those that didn’t were in a position where they were trying to sell their smaller house to move up to a larger one. That meant the homes coming to the market during the pandemic were smaller than those on the market before the pandemic – and that trend continues today. Larger homes tend to come on the market during the summer months when households with children who are out of school are looking to move. That seasonality means, based on historical trends and the fact that fall is now approaching, we can expect smaller, more affordable homes to come to the market throughout the rest of the year. What Does This Mean for You? The seasonal trend of smaller homes coming to the market in the later months of the year, coupled with builders bringing smaller, more affordable newly built homes to the market right now, is good news – especially if you’re finding it difficult to afford a home. If a smaller, more affordable home sounds appealing to you, good news – they’re coming. To keep up with what’s available in our area, DM me. #realestate #homeownership #homebuying www.DanFreshley.com

Image
Get Ready for Smaller, More Affordable Homes Have you been trying to buy a home, but higher mortgage rates and home prices are limiting your options? If so, here’s some good news, smaller, more affordable homes are on the way. In some ways, smaller homes are already here. When the pandemic hit, the meaning of home changed. People needed the space their home provided not only as a place to live, but as a place to work, go to school, exercise, and more. Those who had that space were more likely to keep it. And those that didn’t were in a position where they were trying to sell their smaller house to move up to a larger one. That meant the homes coming to the market during the pandemic were smaller than those on the market before the pandemic – and that trend continues today. Larger homes tend to come on the market during the summer months when households with children who are out of school are looking to move. That seasonality means, based on historical trends and the fact that fall ...
Read more

Accounting, Digital, Broker Comp Tools; FHA, VA, USDA Developments; Why Rates are Stubborn

Image
Imagine my surprise at finding tag (like on the playground) is an organized sport. Imagine my surprise at finding two gas stations at the same intersection yesterday in Truckee, California with two different prices for unleaded! Rather than wait for the CFPB to tell me that I could save money by going to the cheapest station, as it did by paying for a study on how different lenders have different mortgage prices, I actually reasoned, all by myself, that I could, and did, buy the least expensive gasoline. Switching gears, but continuing on with the thinking vein, a lot of reasoning went into determining that a) the earth is round, and b) globes are not some newly invented conspiracy theory. Someone needs to let Georgia’s current GOP district chair Kandiss Taylor know globes are globes. What the heck am I missing by subscribing to the round earth concept? And how about this for sensationalist headlines from Auction.com: One-Third of Buyers Expect Home Prices to Decline. Really? “Despite ...
Read more