This week in the mortgage world has been a bit of a balancing act, with rates holding relatively steady despite some market volatility. Freddie Mac reported the trend for the 30-year fixed-rate mortgage essentially flat from last week, which is good news for those of you keeping a close eye on rates.
We’ve seen some interesting dynamics at play. Normally, when stocks drop, interest rates tend to follow suit as investors flock to bonds. However, this week defied that pattern. Uncertainty around tariffs and fears of slower growth triggered a stock market sell-off, but bonds hit technical resistance, preventing rates from dropping. It’s a reminder that market forces can be complex and unpredictable.
On the bright side, inflation is showing signs of cooling. February’s CPI came in below expectations, and core CPI is nearing the Federal Reserve’s target. This is a positive indicator for future rate decisions, especially with the Fed meeting this week. While no rate cuts are expected, their economic projections will be closely watched for clues about future policy.
From a housing market perspective, we’re seeing some encouraging trends. Zillow’s latest report indicates that lower mortgage rates are starting to energize both buyers and sellers. With increased inventory and homes staying on the market longer, buyers have more choices and time to make decisions. This is a welcome change from the frenzied market we’ve seen in recent years.
It’s important to remember that the market varies by location. Some areas, like San Jose and New York, are still seeing strong seller’s markets, while others, like Miami and Tampa, are offering more opportunities for buyers.
As we move into the spring homebuying season, it’s crucial to stay informed and prepared. Whether you’re a first-time buyer, looking to refinance, or a seasoned investor, I’m here to help you navigate these market conditions. Don’t hesitate to reach out with any questions or to discuss your specific needs. You can simply send me an email or reach out via text or call at 818.307.6072.
