TODAY’S INTEREST 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.
MORTAGE APPLICATIONS WAY UP
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.