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Mortgage rates stayed below 7% this week, holding steady even after a hotter-than-expected inflation report. Normally, a report like that would push rates higher, but this time, the market remained calm. Wall Street is turning its attention to signs that the economy may be slowing.
That shift matters for homebuyers. Economic slowdowns often lead to lower mortgage rates, and many experts believe rates will continue to trend down throughout 2025.
At the same time, household debt is growing. Credit card balances have surpassed $1.2 trillion, and more than 9.7 million people are behind on student loan payments. Missed payments are hurting credit scores, which can make it harder or more expensive to qualify for a mortgage.
While some buyers are waiting on the sidelines, informed buyers are taking action. Since April 2024, mortgage rates have already dropped by about 0.75 percent. Historically, a one percent drop in rates can bring five million new buyers into the market.
This may be a rare window of opportunity. With fewer buyers competing and sellers still willing to negotiate, acting now could help you secure a better deal and lock in a lower monthly payment before the market shifts again.
The information contained is the viewpoint of the presenter(s). Individuals should consult their own financial representative.
Estimated Mortgage Payment is for exemplary purposes only. Contact a licensed loan officer for exact numbers and APR. Additional rates and terms may apply and are subject to change without notice. Loan scenario assumes a purchase price of Zillow's list price and a 10% down payment. Points and fees not included. Property tax, homeowners insurance, mortgage insurance, and HOA fees are approximate and may vary. Other fees may apply. Product displayed is a conventional 30-year fixed rate mortgage using the current average rate as shown on Mortgage News Daily (mortgagenewsdaily.com).
Estimated Qualifying Income assumes a homebuyer has a FICO score above 740, no other credit debt, and a debt-to-income (DTI) ratio of 43%.
For exact numbers and APR or to run a loan scenario based on your own credit and income, contact our office at (858) 259-8700.
Rate Source: Mortgage News Daily. Rates displayed are approximate, subject to change, and do not necessarily reflect rates available to you. MND’s methods involve an objective component based on lenders' raw prices as well as a subjective impression from their network of originators. For more information about how these rates are calculated, visit www.mortgagenewsdaily.com/mortgage-rates/about.
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