A Return To Lower Interest Rates – May 06, 2024

Video Transcript

Huge difference in mortgage rates this week and in market momentum. Interest rates are starting the week down, which marks five straight days of falling rates that’s lowered the typical 30-year fixed-rate conventional mortgage into the mid-6s. The rally was due if you were paying attention.

Through all of April, mortgage rates had climbed on concerns that inflation was back and the Fed was asleep at the wheel. Instead, what we’ve learned in the past 5 days is that (1) The Fed has a plan. (2) The Fed wants to see a lot before Four begins cutting rates, but even more before it would raise them.

And (3) The Fed is willing to release some pressure when it’s warranted such as its decision to slow its sale of bonds back to the market. Again, good for rates. It also helps rates that jobs and wage growth reported slower than expected last week.

The market it seems had swung too far in one direction. Now it’s swinging back. We talk about all these stories in more depth on our main channel.

Subscribe now. I’m Dan with Homebuyer.com. Happy homebuying.