Article Summary
Mortgage rates have been on an upward trend in May, with the average top-tier 30yr fixed rate reaching 6.99%. The increase in rates has been steady, with the latest bump being a noticeable jump from the 6.81% seen at the end of April. Today saw a modest improvement in rates, preventing a break above the 7.0% level. The bond market and economic data, including a speech from Fed Chair Powell, influenced the recent changes in mortgage rates.
What This Means for You
- Be aware of the rising mortgage rates and consider locking in a rate if you’re in the process of buying a home or refinancing.
- Stay informed about economic data and the bond market, as these factors can impact mortgage rates.
- Be prepared for potential fluctuations in mortgage rates and consider working with a mortgage professional to monitor the situation and make informed decisions.
- Keep in mind that future outlook and warnings indicate that mortgage rates may continue to rise as the Federal Reserve combats inflation.
Original Post
Mortgage rates have done almost nothing but move higher in the month of May. The latest bump–seen yesterday–took the average top tier 30yr fixed rate to 6.99%. While this is fairly uneventful in the bigger picture, it was a noticeable increase from the 6.81 seen at the end of April, or the slightly lower range before that.
Today’s improvement was modest, but at least it was an improvement. And at least it prevents us from needing to write headlines about an official break above the 7.0% level.
As for motivations, the bond market (which dictates rates) improved after a slew of economic data this morning and a speech from Fed Chair Powell. In terms of timing, more of the improvement happened after Powell, but it’s impossible to know if traders weren’t simply waiting for the morning’s key events to transpire before fully reacting.
The average lender is about 0.05% lower than yesterday. Most lenders began the day roughly in line with yesterday and then made a mid-day adjustment in response to the bond market gains.
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