There are more factors affecting interest rates then anyone can reasonably keep up with. The most prominent as of late is inflation and employment numbers.
Simply put:
higher inflation = higher rates
Employment numbers showing low unemployment means we have a "hot" economy and money will leave bonds and flow into stocks to capitalize on the momentum. This tends to have an upward pressure on interest rates. (see more at the bottom of post)
rate outlook: Inflation shows no signs of meeting the Fed's benchmark and the economy is being propped up through government spending and semi-reliable employment data reports. Given these two premises, the fed can NOT lower rates or inflation will rear it's ugly head back up and start wreaking havoc again. The dollar already has 20% less purchasing power than just 4 years ago. If inflation gets any worse, it will make homebuying an even harder expedition.
Typically people expect rates to drop at during election season but for the aforementioned reasons, I don't think the Fed can lower it because there is no good arguments for lowering them. (Or at least none that I've heard)
Even Fannie Mae's research team is estimating that the rates will stay above 7% this year. The projected rate cuts are likely to dematerilize as their predecessors did.
MORAL OF THE STORY:
Rates are likely not going to improve going into the end of the year but instead remain stable.
If you see something you like, buy it now. If the fed reduces rates and prices go up, the house you want may become unaffordable despite the lower rate.
Consider any financing as an "acquisition
tracking trends
If you want to see rate trends, you can always follow the 10yr Treasury bond on most consumer sites. 10yr Treasury is the benchmark lending rate across the US. As it increases in price, the cost of borrowing tends to rise everywhere. As it falls, this relieves pressure off interest rates and allows them to come down.
Inflation favors debtors because it causes the value of currency to decline over time, meaning that cash in the future is worth less than cash today. This allows debtors to repay lenders with money that is worth less than when the debt was originally borrowed
Employment numbers:
If businesses are strong and outlook is bold, investors will put their money into the stock market. Stocks and bonds (which is the asset category of your mortgage) will have an inverse relationship typically. As one goes up, the other goes down. This is just a rule of thumb, it doesn't hold true daily, but it gets us in the ballpark of understanding whats going on in.
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