While a Dec. 10 Federal Reserve rate cut is now seen as a lock, MBS investors who fund most home loans aren't as bullish that the central bank will cut rates aggressively in 2026
Trump administration keeps up pressure on Fed, but investors don't expect the US central bank to cut short-term rates until September as policymakers weigh tariff impacts
Purchase loan applications have surged for 2 weeks in a row, but rates for conforming mortgages are inching back up toward 7% this week as investors weigh the odds of Fed rate cuts
Mortgage rates have some room to come back down in June after PCE price index shows annual inflation easing to 2.65% in April, and Q1 2024 GDP growth revised downward to 1.3%