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Tuesday was a quieter day in mortgage rates than Monday, with the average lender only increasing by less than one-eighth of a percentage point. Lenders who raised rates yesterday afternoon were not forced to raise rates by nearly as much today.
In terms of events going on in the market, it was indeed a boring day. Some of the speakers at the Federal Reserve provided differing perspectives on how high rate hikes might be needed to combat inflation. The two agreed on one thing, however: The actual number of rate hikes would depend on the nature of economic data coming in over the next few months.
Fed rate hikes don’t necessarily have a big impact on mortgage rates until they do occur. Rather, it is the underlying data (that which causes changes in market expectations for the fed funds rate) that really matters. The Fed has been clear in communicating important data and we will not see any of the most relevant reports for more than a week.
This means rates may be sideways in the big picture. Just remember, the big picture leaves a fair amount of room to define the “edge”. For example, one could argue that rates have been sideways since late 2022 as they have bounced back and forth between 6 and 7%, roughly speaking, in terms of top tier, 30yr fixed mortgages.
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