TODAY’S INTEREST RATES
Mortgage rates it 6 week lows on Friday, only to bounce back up some this week.
Fears in the banking sector sent investors into the safety of bonds which helps Mortgage Interest Rates.
The news of First Citizens bank acquiring Silicon Valley Bank’s deposits and loans along with relative calmness in the European Banking Sector helped
the stock market and hurt the bond market on Monday.
As of Tuesday Morning, the stock market futures are down which could mean a good day for interest rates.
This is quite the wild ride!
The average interest rate in the country is about .1% lower than my update 7 days ago.
Most well qualified conventional borrowers will find themselves in the mid 6% range depending on closing cost and credit qualifications.
As rates fluctuate near that 6.5% rate market, buyer demand increases substantially.
Demand will increase even more when rates hit 6%.
Remember leading Interest Rate Prognosticator, Barry Habib, has pointed to
May 10th as a pivotal day where inflation numbers should drop and interest rates will likely improve. If this happens, expect buyer demand to quickly rebound
while there is still very low inventory.
If this happens, you will see pressure on home prices to move up. Higher demand and lower inventory. The window of opportunity could be closing.
See video below:
FED RAISES RATES .25%
Most expected the FED to raise rates 0 to .25%.
The FED decided on a .25% raise in the Federal Funds Rate.
In Fed Chair’s comments, Jerome Powell stated that the FED considered a pause in interest rate hikes, but ultimately decided that it’s best course of action was to continue rate hikes as price stability and getting inflation to 2% was most important.
Let’s look at what’s happening on a larger scale.
The failure of 2 banks is going to cause the banks to shore up their balance sheets and be stricter on lending. If banks are not giving out as many loans, the economy will slow, layoffs/hour reductions will happen and inflation will go down.
As inflation goes down, mortgage rates will follow.
WHY HOUSING MARKET ISN’T GOING TO CRASH