Timothy Brown

If the trendline in this graph was of your investment portfolio, you would be on the phone with your financial advisor wondering if they took a large position in the latest crypto currency...but alas this is the trendline of the 10 year treasury note, the benchmark for the 30 year fixed rate mortgage. With the Fed expected to cut the Prime Rate by the end of September, investors are more confident mortgage rates are heading lower which is the reason for the downward trendline. This is great news for home buyers who have been sitting on the sideline while interest rates were at or near 20 year highs. 😊

Mortgage rates continue to hold steady near 5-month lows even after the Federal Reserve tamped down expectation of a March cut in the federal funds rate (currently at 5.5%). The Fed is waiting for more evidence that inflation remains in check prior to making its first rate cut since March 2020 when the rate was reduced to .25% as we entered the Global Pandemic. Fortunately, mortgage rates have been minimally impacted by this news.

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