Last week was a rough week in markets, especially for mortgage rates. Let’s unpack what’s been happening with interest rates lately. Buckle up, because things are moving fast, and it’s important to understand what these shifts might mean for your homeownership goals.
The Inflation Factor
Remember how we were hoping inflation was cooling down? Well, recent reports threw a wrench in the works. Inflation numbers came in higher than expected in last week’s CPI (Consumer Price Index), making investors nervous. Unfortunately, this fear translates into higher interest rates. On top of that, all the earlier talk about the Fed cutting rates this year seems to be on pause, further fueling the upward climb in rates.
Navigating the Uncertainty
For the moment, this likely means higher interest rates across the board. The good news is that, with careful planning and the right strategies, we can still successfully navigate this market together.
While the recent news is a bit of a setback, let’s not get discouraged. It’s vital to stay updated on incoming economic data. If inflation starts showing signs of truly easing, we could see some relief in interest rates. We’re also keeping a close eye on the Fed’s statements for any policy clues.
The 4.5 Percent Threshold & Rate Trends
As a technical note, keep an eye on the 10-year Treasury Note. If it falls back below 4.5 percent, that could be a positive sign for mortgage rates leveling off. Also, while Freddie Mac’s survey of average mortgage rates reports averages 6.88 percent, daily market movement means available rates might fluctuate.
What I’m watching this week
There are a couple of important housing reports coming out this week. The first is the Housing Starts and Building Permits, a leading indicator of housing sales. Housing starts in March fell back more than expected, to a 1.32 million annual rate versus the 1.480 million expected. Permits also retreated more than expected to 1.46 million when they were expected to hold steady at 1.541 million.
We’re watching the Existing Home Sales too. After February’s jump from January’s 3.92 million annualized rate to 4.38 million which the National Association of Realtors said reflected pent-up demand, existing home sales in March are expected to fall back to 4.18 million.
What This Means for You
Don’t put your home search on hold! Remember, rates are just one piece of the puzzle. With smart strategies and the right loan product, you can still find the perfect home, even during uncertain times. It’s important for us to stay in close communication. Real-time rate updates and creative financing options are key to helping you create the best plan in a changing market. You can always reach out to me by sending me an email or calling/texting me at 818.307.6072.
I’m here to guide you every step of the way. I’ll keep you informed about any rate changes and help you explore different loan options to find the best fit for your situation. Don’t hesitate to reach out with any questions, big or small! We’re in this together.
