Recession = Lower Mortgage Rates

Interest rates have drifted up about .1% in the past 7 days.

MBS Highway highlighted the Leading Economic Indicators (LEI) Index in their daily update.

The LEI is down 4.2% in the past 6 months and has gone down 10 months in a row.

Another big indicator is an inverted yield curve.

This happens when a longer maturity treasury bond gives you a lower rate of return than a short term treasury bond.

Both the LEI drop and the inverted yield curve are historically accurate signs of a recession. 

A recession = lower mortgage rates.

Leading Mortgage Prognosticator, Barry Habib, expects mortgage rates to drop to 5% in 2023.

Also a reminder that historically housing does very well in a recession.


Mortgage applications have increased 27.9%!

That is a huge swing higher and we’ve been feeling it.

Buyers activity has increased substantially and we’ve even run up against a few multiple offer type situations.

See video below.

Spring is typically a high buyer season and we expect this trend to continue as more home buyers come into the market and I expect mortgage rates to slowly move lower.