TODAY’S INTEREST RATES
Mortgage interest rates hit 4 month lows after the Consumer Price Index Inflation Report on Thursday, January 12th.
They have since moved up some, but are about .1% lower than the week before.
December’s inflation numbers fell in line with estimates and show that inflation is coming back down to earth.
Year over year inflation dropped from 7.1% to 6.5%.
As inflation goes down, interest rates should follow.
Many experts are currently giving a LOCK recommendation as the Mortgage Backed Security Market has a level of resistance on the 200 day moving average that may be difficult to surpass. This means that rates have a higher likelihood of going up some verses going down in the short term.
We are also seeing an inverted yield curve when comparing the 10 year treasury and 3 month treasury.
This data typically signals a recession, which usually results in a drop in the stock market and improvement in interest rates.
I still expect interest rates to come down in 2023, but it won’t be a linear process.
More down than up days over a period of time = gradual rate improvement.
EXPERT INSIGHT IN 2023 HOUSING MARKET