07 Apr What is happening right now with mortgage rates?
What is happening right now with mortgage rates?
I have mentioned before that the market determines mortgage rates and while it is influenced by the Federal Reserve and their fiscal policies it does not necessarily go hand and hand.
The Federal Reserve has continued to raise interest rates with a .25 basis point increase at the last meeting. Depending on the inflation results coming in next week they are expected to raise rates another .25 basis points in May.
What about after that?
The national banking executives that I have talked to say after the increase in May we will see no more increases by the Federal Reserve and after a few months of pause they will reduce rates by .75 basis points to give our economy a “soft landing” after all these rate increases.
New jobs are starting to decrease, and layoffs have begun to happen with industries seeing the need to keep pace with demand.
What are rates today?
We have conventional mortgage interest rates at high 5% currently and FHA/VA at low 5%. This is a dramatic decrease after they peaked at over 7% just a short time ago.
Feel free to call me with questions at 612-386-8600.