Rep. Troy Downing Discusses Trump’s Housing Bill Delay
Rep. Troy Downing from Montana spoke about President Trump’s choice to postpone signing the housing bill until the Senate progresses on the SAVE America Act.
Mortgage Rates According to Freddie Mac, the mortgage buyer, rates were mostly stable, although there was a slight increase this week.
The average interest rate for a 30-year fixed mortgage climbed to 6.49%, up from 6.47% the week before and 6.52% two weeks ago, as per the latest Primary Mortgage Market Survey. Just a year ago, this rate was higher at 6.77%.
Experts Say Housing Affordability Is Unlikely to Improve
Mortgage rates have seen minor fluctuations recently. Sam Cater, the chief economist at Freddie Mac, noted, “The average 30-year fixed mortgage rate was little changed this week at 6.49%.” He added that rates have been relatively stable over the past six weeks, while purchasing activity has decreased slightly. Interestingly, refinance activity has seen a rise, likely due to how borrowers are responding to current interest levels.
For 15-year fixed mortgages, the average interest rose to 5.84%, compared to 5.81% last week, but it’s still lower than the 5.89% average from a year ago.
Income Needed for Median-Priced Home Has Nearly Doubled Since 2020
Several factors influence mortgage rates, including the Federal Reserve and global politics. While mortgage rates are not directly impacted by the Fed’s interest rate decisions, they are closely tied to the yield on 10-year Treasury notes. As of Thursday afternoon, that yield was hovering around 4.4%.
This mortgage data comes shortly after the Federal Reserve opted to keep benchmark interest rates steady in the range of 3.5% to 3.75%. This decision was influenced by concerns that inflation might remain elevated, partly due to geopolitical situations like oil supply disruptions. Interestingly, the policymakers unanimously agreed on this decision, with forecasts indicating possible rate hikes by the end of the year.
Federal Reserve Maintains Interest Rates Amid Global Tensions
The Commerce Department also released the Personal Consumption Expenditures (PCE) Index, which reflects inflation as measured by the Fed. It reported a year-over-year increase of 4.1% in PCE inflation and a rise of 3.4% in core PCE. These figures are well above the Fed’s target of 2%, which diminishes expectations for a rate cut this year.
As of now, the CME FedWatch predicts that rates are likely to remain steady through the year, but it also suggests that there’s a greater chance of hikes rather than cuts in the near future.
