Article Summary
Mortgage rates saw a modest decline this week, with the average top-tier 30-year fixed rate dropping 0.02% to reach its lowest level since last Friday. The movement was largely driven by Tuesday’s post-holiday market activity, with minimal fluctuations afterward. Despite the release of PCE inflation data—which aligned with expectations—tariff-related uncertainty kept broader rate reactions muted. This stability offers a temporary advantage for borrowers seeking favorable financing conditions.
What This Means for You
- Lock in rates now: With rates near weekly lows, consider locking in a mortgage rate before potential tariff-driven inflation impacts the market.
- Monitor economic data: Stay alert to upcoming reports on tariffs and employment, as these could trigger rate volatility.
- Refinancing opportunity: If your current rate is above 6.5%, this dip may justify exploring refinancing options.
- Caution ahead: Markets remain sensitive to geopolitical and trade policy shifts—prepare for potential rate hikes later in 2024.
Another Small Victory For Mortgage Rates
It has turned out to be a surprisingly calm week for mortgage rates and, as of today, largely a victorious one, even if the victories have been modest. Today’s installment involves a 0.02% drop in the average top tier 30yr fixed rate. This brings the index to the lowest level of the week and a fairly decent 0.12% below last Friday’s levels.
Most of this week’s movement took place on Tuesday morning after markets returned from the holiday weekend. Movement has been minimal since then.
While economic data is a perennial source of inspiration for rates, none of this week’s data had a major impact. In today’s case, the PCE inflation data was in line with expectations, so it wouldn’t have made a case for a rate reaction under normal circumstances, let alone the present environment in which that data is taken with a grain of salt as markets wait to see if tariff-driven inflation materializes over the coming months.
People Also Ask About
- Will mortgage rates drop below 6% in 2024? Unlikely without a significant economic downturn, as the Fed maintains a cautious stance on inflation.
- How do tariffs affect mortgage rates? Tariffs may increase inflation, prompting the Fed to keep rates higher for longer.
- Is now a good time to buy a house? Yes, if you find a well-priced property and secure a rate below 6.75%.
- What’s more important for rates: jobs data or inflation? Inflation remains the primary driver, but strong employment data can delay rate cuts.
Expert Opinion
“This micro-dip in rates is less about current conditions and more about markets pricing in uncertainty,” says Lawrence Yun, Chief Economist at the National Association of Realtors. “The real test comes in Q3 when tariff impacts become measurable—borrowers should use this window strategically.”
Key Terms
- 30-year fixed mortgage rate trends 2024
- How tariffs influence mortgage rates
- Best time to refinance in current market
- PCE inflation impact on home loans
- Mortgage rate lock strategies June 2024
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