{"id":5815,"date":"2024-05-02T05:30:00","date_gmt":"2024-05-02T10:30:00","guid":{"rendered":"https:\/\/nwiloanguy.com\/blog\/what-is-going-on-with-mortgage-rates\/"},"modified":"2024-05-02T05:30:00","modified_gmt":"2024-05-02T10:30:00","slug":"what-is-going-on-with-mortgage-rates","status":"publish","type":"post","link":"https:\/\/nwiloanguy.com\/blog\/what-is-going-on-with-mortgage-rates\/","title":{"rendered":"What Is Going on with Mortgage Rates?"},"content":{"rendered":"

\"What<\/p>\n

You may have heard mortgage rates<\/a> are going to stay a bit higher for longer than originally expected. And if you\u2019re wondering why, the answer lies in the latest economic data. Here\u2019s a quick overview of what\u2019s happening with mortgage rates and what experts say is ahead.<\/p>\n

Economic Factors That Impact Mortgage Rates<\/strong><\/h4>\n

When it comes to mortgage rates, things like the job market, the pace of inflation, consumer spending, geopolitical uncertainty, and more all have an impact. Another factor at play is the Federal Reserve<\/em> (the Fed) and its decisions on monetary policy. And that\u2019s what you may be hearing a lot about right now. Here\u2019s why.<\/p>\n

The Fed decided to start raising the Federal Funds Rate to try to slow down the economy (and inflation) in early 2022. That rate impacts how much it costs banks to borrow money from each other. It doesn’t determine mortgage rates, but mortgage rates do respond when this happens. And that\u2019s when mortgage rates<\/a> started to really climb.<\/p>\n

And while there\u2019s been a ton of headway seeing inflation come down since then, it still isn\u2019t back to where the Fed wants it to be (2%). The graph below<\/a> shows inflation since the spike in early 2022, and where we are now compared to their target rate:<\/p>\n

\"No<\/a><\/p>\n

<\/p>\n

As the graph shows, we\u2019re much closer to their goal of 2% inflation than we were in 2022 \u2013 but we\u2019re not there yet. It’s even inched up a hair over the last 3 months \u2013 and that\u2019s having an impact on the Fed\u2019s plans. As Sam Khater, Chief Economist at Freddie Mac<\/em>, explains<\/a>:<\/p>\n

\u201cStrong incoming economic and inflation data has caused the market to re-evaluate the path of monetary policy, leading to higher mortgage rates.\u201d<\/em><\/p><\/blockquote>\n

Basically, long story short, inflation and its impact on the broader economy are going to be key moving forward. As Greg McBride, Chief Financial Analyst at Bankrate<\/em>, says:<\/p>\n

\u201c<\/em>It\u2019s the longer-term outlook for economic growth and inflation that have the greatest bearing on the level and direction of mortgage rates.<\/em><\/strong> Inflation, inflation, inflation \u2014 that\u2019s really the hub on the wheel.\u201d<\/em><\/p><\/blockquote>\n

When Will Mortgage Rates Come Down?<\/strong><\/h4>\n

Based on current market data, experts think inflation will be more under control and we still may see the Fed lower the Federal Funds Rate this year. It\u2019ll just be later than originally expected. As Mike Fratantoni, Chief Economist at the Mortgage Bankers Association<\/em> (MBA), said<\/a> in response to the Federal Open Market Committee<\/em> (FOMC<\/a>) decision yesterday:<\/p>\n

\u201cThe FOMC did not change the federal funds target at its May meeting, as incoming data regarding the strength of the economy and stubbornly high inflation have resulted in a shift in the timing of a first rate cut. <\/em>We expect mortgage rates to drop later this year, but not as far or as fast as we previously had predicted.<\/em><\/strong>\u201d<\/em><\/p><\/blockquote>\n

In the simplest sense, what this says is that mortgage rates<\/a> should still come down later this year. But timing can shift as new employment and economic data come in, geopolitical uncertainty remains, and more. This is one of the reasons it\u2019s usually not a good strategy to try to time the market. An article in Bankrate <\/em>gives buyers this advice:<\/p>\n

\u201c . . . <\/em>trying to time the market is generally a bad idea. If buying a house is the right move for you now, don\u2019t stress about trends or economic outlooks<\/em><\/strong>.\u201d<\/em><\/p><\/blockquote>\n

Bottom Line<\/h3>\n

If you have questions about what\u2019s happening in the housing market and what that means for you, connect with a trusted real estate professional.<\/p>\n

Source: New feed<\/p>\n","protected":false},"excerpt":{"rendered":"

You may have heard mortgage rates are going to stay a bit higher for longer than originally expected. And if you\u2019re wondering why, the answer lies in the latest economic data. Here\u2019s a quick overview of what\u2019s happening with mortgage rates and what experts say is ahead. Economic Factors That Impact Mortgage Rates When it […]<\/p>\n","protected":false},"author":1,"featured_media":5816,"comment_status":"false","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"rop_custom_images_group":[],"rop_custom_messages_group":[],"rop_publish_now":"initial","rop_publish_now_accounts":{"facebook_10157519356927224_105287467588662":"","twitter_15771620_15771620":""},"rop_publish_now_history":[],"rop_publish_now_status":"pending","_exactmetrics_skip_tracking":false,"_exactmetrics_sitenote_active":false,"_exactmetrics_sitenote_note":"","_exactmetrics_sitenote_category":0,"_genesis_hide_title":false,"_genesis_hide_breadcrumbs":false,"_genesis_hide_singular_image":false,"_genesis_hide_footer_widgets":false,"_genesis_custom_body_class":"","_genesis_custom_post_class":"","_genesis_layout":"","jetpack_post_was_ever_published":false,"_jetpack_newsletter_access":"","_jetpack_dont_email_post_to_subs":false,"_jetpack_newsletter_tier_id":0,"_jetpack_memberships_contains_paywalled_content":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":"","jetpack_publicize_message":"","jetpack_publicize_feature_enabled":true,"jetpack_social_post_already_shared":true,"jetpack_social_options":{"image_generator_settings":{"template":"highway","default_image_id":0,"font":"","enabled":false},"version":2}},"categories":[1],"tags":[54],"class_list":{"0":"post-5815","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-local-info","8":"tag-100-financing","9":"entry"},"yoast_head":"\nWhat Is Going on with Mortgage Rates?—NWI Loan Guy Blog<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/nwiloanguy.com\/blog\/what-is-going-on-with-mortgage-rates\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"What Is Going on with Mortgage Rates?—NWI Loan Guy Blog\" \/>\n<meta property=\"og:description\" content=\"You may have heard mortgage rates are going to stay a bit higher for longer than originally expected. 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