Mortgage Rates Continue to Decrease

As inflation continues to moderate, mortgage rates declined again this
week.  Rates are at their lowest level since September of last year boosting
both the homebuyer demand and homebuilder sentiment.  Declining rates are
providing a much-needed boost to the housing market, but the supply of
homes remains a persistent concern.  @Freddie Mac

December 8, 2022

Mortgage Rates Continue to Drop

Mortgage rates decreased for the fourth consecutive week, due to increasing concern over lackluster economic growth. Over the last four weeks, mortgage rates have declined three quarters of a point, the largest decline since 2008.  While the decline in rates has been large, homebuyer sentiment remains low with no major positive reaction in purchase demand to these lower rates.  -@FreddieMac
 

September 5,2022

Financial Market News

Traders continue to assess market data before the FOMC meeting at the end of the month to see how far the central bank will go in its battle against inflation. The thinking is that the more positive the economic figures, the less the Fed will have to worry its aggressive hiking cycle will trigger a downturn. Today’s potential highlight was the latest ECB decision, which yielded a 75-basis point rate hike, as well as ECB head Lagarde’s press conference shortly after. Domestically, Fed Chair Powell is also scheduled to speak alongside Chicago Fed President Evans. Weekly jobless claims were released, registering at 222k. Later this morning brings Freddie Mac’s Primary Mortgage Market Survey and July Consumer Credit.(@ Chrisman).   It remains anticipated that the Fed will make two more rate hikes this year, including a projected .75 bump in September.

Interesting Information for Buyers

When interest rates rise, alternative mortgage programs have more relevance for buyers.  ARMs and buydowns have entered our discussions, as well as creative options for using seller credits (!).  It’s not a buyer’s market yet, but we can certainly see the trend evolving hiking cycle will trigger a downturn. Today’s potential highlight was the latest ECB decision, which yielded a 75-basis point rate hike, as well as ECB head Lagarde’s press conference shortly after. Domestically, Fed Chair Powell is also scheduled to speak alongside Chicago Fed President Evans. Weekly jobless claims were released, registering at 222k. Later this morning brings Freddie Mac’s Primary Mortgage Market Survey and July Consumer Credit.(@ Chrisman).  It remains anticipated that the Fed will make two more rate hikes this year, including a projected .75 bump in September.

Interesting Information for Buyers

When interest rates rise, alternative mortgage programs have more relevance for buyers.  ARMs and buydowns have entered our discussions, as well as creative options for using seller credits (!).  It’s not a buyer’s market yet, but we can certainly see the trend evolving.