The Impact of 2023 Mortgage Rate Spreads on Current Rates
Are you in the market for a new home or looking to refinance your current mortgage? If so, you may be interested in the latest trends in mortgage rates and housing market data.
One interesting point to note is that if we were to compare the worst levels of spreads from 2023 to today, mortgage rates would be 0.48% higher. While we are not currently at average spread levels, the improvement we have seen this year is definitely a positive sign.
Last week, inflation data and testimony from Federal Reserve President Jerome Powell had a positive impact on mortgage rates as the 10-year yield fell to a critical level of 4.20%. Breaking below this level could lead to further decreases in mortgage rates, but we may need additional economic data or Fed statements to push the yield lower.
Purchase application data has also shown positive trends in recent weeks, with 12 weeks of growth last seen when mortgage rates were at 6%. Even with rates nowhere near that level, the increase in purchase apps is a good sign for the housing market.
Weekly housing inventory and new listings data have been affected by the July 4th holiday, so it’s important to take that into consideration when analyzing the numbers. However, it’s worth noting that new listings are currently at their lowest point ever recorded.
Price-cut percentages have been higher this year compared to the last two years, indicating that some areas may have higher inventory levels. Pending sales data shows a slight increase in demand compared to previous years, which is a positive sign for the market.
Looking ahead, we can expect more insights from Powell and other Fed officials, as well as key data releases such as retail sales and housing starts. Keeping an eye on these indicators can help you make informed decisions when it comes to buying or refinancing a home.
Overall, the current trends in mortgage rates and housing market data show a mix of positive and challenging factors. By staying informed and monitoring key data points, you can navigate the market with confidence.
Disclaimer: The information provided in this article is for informational purposes only and should not be considered as financial advice. The content is based on general research and may not be accurate, reliable, or up-to-date. Before making any financial decisions, it is recommended to consult with a professional financial advisor or conduct thorough research to verify the accuracy of the information presented. The author and publisher disclaim any liability for any financial losses or damages incurred as a result of relying on the information provided in this article. Readers are encouraged to independently verify the facts and information before making any financial decisions.