Heightened fears of a trade war and recession have investors convinced the Fed will start cutting rates again in June, a sentiment that gives mortgage rates more room to come down
Investors who fund most home loans are now convinced that the Federal Reserve won't cut rates again until June after employers add 256K jobs and unemployment falls to 4.1%
With mortgage rates back to where they were last summer, purchase applications are coming in at the slowest pace since February 2024, Mortgage Bankers Association lender survey finds
October Consumer Price Index report isn't having a big impact on mortgage rates, as investors who fund most home loans doubt the Fed will have much room to bring rates down next year
Move was anticipated by investors that fund most home loans, who have been driving up mortgage rates over concerns about inflation and pace of future Fed rate cuts
Reports send mixed signals on the economy, with CPI showing prices rose more sharply than expected in September and jobless claims surging to highest level in more than a year
Investors see a September rate cut as a given, but the latest inflation data suggests recession fears are overblown and that the Fed will start out with a modest, 25-basis point reduction
As financial targets pave the way for interest rates to (finally) fall, the real estate industry is cautiously optimistic about a late-year boost
After spiking in the wake of the June 27 presidential debate, mortgage rates are trending down again on mounting expectations that the Federal Reserve will start cutting rates in September
Key Fed inflation metric expected to drop June 28 following unexpected decline in May wholesale prices and jump in weekly jobless claims to 242K workers, highest level since August 2023
Policymakers now envision making just one rate cut this year, but investors who fund most mortgages are still betting the central bank will change its tune if inflation continues to ease
In less than a week, a series of reports has changed the outlook for the timing and magnitude of future Fed rate cuts, sending mortgage rates into a 5-day tailspin back below 7%
Some borrwers were quick to spring into action, with applications for purchase loans rising by a seasonally adjusted 2% and requests to refinance up 5% week over week, MBA survey shows
Mortgage rates rise for the fourth day in a row, pushing back through 7% as more worrisome inflation data puts to rest any lingering hopes for a Federal Reserve rate cut this spring
Purchase mortgage applications surge by 8% as homebuyers seeking to take advantage of recent decline in rates get an early jump on the spring homebuying season, MBA lender survey shows