Why Are Mortgage Rates so Finicky

Recent inflation reports indicate that mortgage rates have been unpredictable and deviating from normal patterns. It's important to note that the primary determinant of these high interest rates is inflation. 

Ideally, a decrease in inflation should signal a subsequent drop in mortgage rates. However, the latest Consumer Price Index report suggests otherwise. Inflation saw a rise to 3.2% in July, which was a slight increase from June. This prompted an unexpected surge in rates over the past weeks. Realtor.com reveals a fluctuating mortgage rate between 6% and 7% for several months now. The most recent forecast anticipates that the 30 year fixed rate will round out the year at approximately 6.6%. Expert predictions suggest that this volatility might extend into 2024. 

Instead of fretting over these mortgage rates, we're advising buyers to focus on the manageable aspects of the process. A variety of options remain available when seeking a loan, including zero down payment options and down payment assistance programs. 

My team and I are ready and willing to help you strategize your next step. Please reach out for our experienced and personalized assistance.