What’s Happening with Mortgage Rates?
Ever find yourself puzzled by all the talk about mortgage rates? You’re not alone. One minute, the buzz is that rates are dipping. The next, headlines declare they’re on the rise again. It’s enough to make anyone’s head spin as you try to figure out what is really going on.
The truth: the information you come across may differ depending on the timeframe being discussed. It can also differ depending on the day and time of day you’re looking at rates.
The Rise and Fall of Mortgage Rates
Mortgage rates change daily, sometimes multiple times throughout the day. With many factors influencing their movement—economic indicators, Federal Reserve decisions, global events, and more—it’s no wonder they seem to be in a constant state of flux, climbing one moment and tumbling the next.
Consider the following graph from Mortgage News Daily, which tracks the ups and downs of the 30-year fixed mortgage rate starting from October 2023 to early 2024:
A glance at this graph reveals a series of peaks and valleys, each varying in magnitude. Depending on which two points you choose to focus on, the conversation about mortgage rates can change dramatically.
For instance, analyzing the trend from the start of February to the present might lead you to believe that rates are inching upward. However, when comparing the most recent data point to last October’s high, it’s evident that rates have generally trended downward. So, which perspective is more accurate?
Look at Mortgage Rate Trends
The nature of mortgage rates is inherently dynamic—they’re always on the move. It’s easy getting caught up in the day-to-day fluctuations, and it’s important to step back and view the mortgage rate trends to see what’s really happening.
By comparing the peak rates of last October to the current rates, it’s clear: rates have decreased from their highs of 2023. Industry experts concur that this downward trend could persist throughout the year. For prospective homebuyers, this is significant news! Rates dropping can lead to lower monthly payments better suited for your budget, or a bigger house or higher price point than you could have purchased last year.
What’s Your Mortgage Rate?
Feeling confused by the mixed signals about mortgage rates? You’re not the only one. The key is to look beyond the daily rate changes and focus on the longer-term trend. Ready to see what you qualify for? Curious about what rate and loan program are best for you and your budget? Click here to request a quote or call/text our team at (303) 477-3889.
