Mortgage Rates Lowest Since February 2023
Mortgage rates took an unexpected dip today, despite a higher-than-expected inflation report. While inflation has typically driven rate changes, the focus has shifted to the job market.
Mortgage rates went down today, even though an important report showed inflation was higher than expected. This may seem surprising because, in recent years, inflation reports have usually caused mortgage rates to rise or fall. Higher inflation usually means higher mortgage rates, and vice versa.
However, as mentioned before, inflation isn’t the main factor anymore. Now, the job market has a bigger influence on mortgage rates.
That doesn’t mean inflation doesn’t matter or won’t matter in the future. Today’s inflation report was just one in a series, and the last three reports showed good progress toward the Federal Reserve’s goal of keeping inflation around 2% per year. In fact, if you only looked at those three reports, inflation is already under 2%.
Even though the bond market (which affects mortgage rates) moved around a bit today, it wasn’t enough to stop the improvement in mortgage rates. Many lenders were relieved by this and adjusted their rates in response to the lack of negative market reaction.
Call us with questions 909-962-9011 or 661-544-8810