With the Federal Reserve signaling more aggressive policy actions to come, mortgage rates grew for the second week in a row.

The average 30-year fixed interest rate rose from 5.55% on Aug. 25 to 5.66% on Sept. 1, according to Freddie Mac.

The Fed’s September meeting and stance on reducing inflation will play a large role in dictating mortgage rate movement over the remainder of 2022. Many experts wonder if inflation reached its peak and if interest rate growth will start to slow as well.

The post Mortgage interest rate predictions: Will rates go down in September 2022? first appeared on MegaIcon Magazine.

The post Mortgage interest rate predictions: Will rates go down in September 2022? appeared first on MegaIcon Magazine.

The average 30yr fixed rate is back in the upper 5% range with some lenders already in the low 6’s. As has been and continues to be the case, the average lender makes more money at 5.625% versus 5.75%. The same is true of 6.125% and 6.25%. Counterintuitive yes, but there’s a reason (dive deep HERE if you’re interested).

Rather than view the recent rate spike as the product of one or two individual events, it’s better thought of as a general correction to the overly-aggressive drop in July. In other words, rates are finding their range somewhere below the highest levels of the year and the recent lows.
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Those highs and lows should serve as firm boundaries unless there’s a big change in the economy or with inflation. It’s worth noting that “the economy” isn’t as simple as “GDP.” The type of economic weakness required for a sustained drop in rates is better measured in terms of the labor market. Even then, inflation would need to be falling more convincingly than it has so far.

The post Highest Mortgage Rates in More Than a Month first appeared on MegaIcon Magazine.

The post Highest Mortgage Rates in More Than a Month appeared first on MegaIcon Magazine.