Mortgage rates were higher again this week in Freddie Mac’s Weekly Survey. The 30 Year Fixed Rate Mortgage was at 4.72% in today’s Freddie Mac survey and the 15 Year Fixed Rate Mortgage was at 3.91%. The Federal Reserve recently stopped buying mortgage bonds, raised the Fed Funds Rate target by 0.25%, and indicated it will begin to liquidate mortgage and treasury bonds sometime in next few months. The notes from the recent FOMC meeting indicate they are seriously considering half-point fed funds rate increases in the future and more rapidly bringing down the balance sheet that previously attempted.
It’s still unclear whether the recent geopolitical instability will have a longer term material impact on the Fed’s rate and balance sheet decisions, and thus impacting domestic interest rates. The recent yield curve inversion indicates a possible recession in the not too distant future and downward rate pressure is usually applied by the Fed in those situations. But, inflation pressures suggests interest rates need to go much higher. The interest rate outlook over the next year remains difficult to predict.
Freddie Mac’s Weekly Survey was released this morning with its most recent assessment of the mortgage rate landscape. See the details of their survey below.
(dynamic chart with current info)