Mortgage rates were down again this past week in the Freddie Mac Weekly Survey. The 30 Year Fixed Rate Mortgage was at 6.33% in the Freddie Mac survey results and the 15 Year Fixed Rate Mortgage was at 5.67%.
Freddie Mac’s Weekly Survey (see below) was released today with its most recent assessment of the mortgage rate landscape. Freddie Mac now has a new methodology to it’s rate reporting, which started last month.
(dynamic chart with current data)
In other rate news, the Fed Funds Rate target is expected to be increased by 0.50% on Wednesday. The Fed has also been getting more aggressive in tapering its balance sheet, which is know as QT (quantitative tightening.) The plan is to reduce mortgages held by the Fed by $35 billion per month and US Treasury securities held by the Fed by $60 billion per month.
The yield curve for treasury securities remains inverted with long term rates lower than short term rates. As seen below, these levels of inversion have not happened in a very long time and tend to be predictive of recessions.