Christmas Week Interest Rate Update!

Last week, the Fed’s decision to slow the pace of rate hikes from 0.75% to 0.50%, along with lower-than-expected consumer price inflation, sent mortgage rates lower. Both signaled that inflation may be starting to cool.

Freddie Mac confirmed: “Mortgage rates continued their downward trajectory this week…. The good news for the housing market is that recent declines in rates have led to a stabilization in purchase demand.”

The Mortgage Bankers Association chimed in with the view that declining rates should “encourage more homebuyers to return to the market in early 2023,” as overall mortgage applications already rose 3.2% last week.