Mortgage Rates

By now, you have probably heard conflicting reports about the direction of mortgage rates. Some economists predict that inflation will worsen (bad for mortgage rates), while others fear our economy is headed for recession (usually good for mortgage rates). This week, economists and investors are especially interested in whether the Federal Reserve will maintain its current stance or signal a pivot and ease rates to stimulate growth.

All eyes are on the Fed as it tries to balance its dual mandate of price stability and maximum employment. In recent months, inflationary pressures have eased from their pandemic peaks, but core inflation remains stubbornly above the Fed’s 2% target. Meanwhile, the labor market has shown signs of cooling, with wage growth slowing and some sectors reporting layoffs. Also, adding to the mix of data, consumer confidence was much lower than expected.

Federal Reserve Meeting

Current odds favor a neutral stance from the Fed. In other words, we probably will not see the Fed lower rates. However, everyone will be listening to what Fed Chair Jerome Powell says at his post-meeting press conference to try to glean what we can expect in the next few months.

If you have any questions or are interested in discussing your mortgage needs, please contact us.