The current economic data is hinting at several rate cuts through the end of the year. Mortgage rates have largely baked this in with a huge plunge in the 30 year mortgage rate over the last few weeks. The average 30 year rate currently sits around 6.35%. The challenge is that we have rising inflation, with CPI (Consumer Price Index) coming in a bit higher at 2.9% and rising unemployment, which puts the Fed in a bit of a tough spot, do you focus on job growth or fighting inflation?
Considering mortgage rates are linked to the 10 year Treasury bond yield, which tends to go up if inflation is going higher, we may be in for a choppy ride in the next few months.
Considering mortgage rates are linked to the 10 year Treasury bond yield, which tends to go up if inflation is going higher, we may be in for a choppy ride in the next few months.
Happy Labor Day
