Wondering what mortgage rates will be tomorrow, or today, or an hour from now?
Nobody knows, because there are literally hundreds of factors used in the setting of mortgage rates. Some of them are obvious, like economic news and government policy. Others are more esoteric, like technical trading patterns and algorithmic trading.
One factor, though, is important to mortgage rates above all else and that’s the effects of inflation.
Inflation is the number one force on U.S. mortgage rates and it’s why lenders and real estate agents and everyone else involved in the buying and selling houses pays such close attention to it.
Inflation is the enemy of low mortgage rates. When inflation pressures rise, mortgage rates tend to go with them. And when inflation rates slow, mortgage rates tend to fall.
Now, as a homebuyer with a job and with a life and with other things to pay attention to each day, you can’t be expected to also keep track of things like the monthly jobs report, or the strength of the dollar versus a basket of global currencies. You have enough to think about.
So, when you’re thinking about rates and have questions about what they’re doing, use the chatbox below and let us know what you’re thinking. We’re here to help.
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Home buyers snatched up properties for sale in May as housing made its v-shaped recovery.