Found 6 blog entries tagged as Interest Rates.

Mortgage Rates Dip as The Spring Market Approaches

Harbor Island Park, Mamaroneck

The U.S. housing market is experiencing a slight easing in mortgage rates, offering a glimmer of hope for prospective buyers as the spring selling season approaches. Today, the average 30-year fixed mortgage rate hit a new low for 2025, dropping to 6.70%. Additionally,

  • Refinance activity hit its fastest pace since October 2024.

  • Mortgage applications increased 9% week-over-week, up 2% from last year.

  • Property tours are up 25% from the start of the year, according to Redfin.

Ralph’s Take

Mortgage rates have shown stability, a promising sign for both buyers and sellers as we head into the spring…

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Fed Hits Pause: No More Rate Cuts — for Now

In its latest policy meeting, the Federal Reserve opted to maintain the federal funds rate at 4.25% to 4.5%, pausing after three consecutive rate cuts. Fed Chair Jerome Powell emphasized there is no immediate need to adjust the policy stance, noting that while inflation has decreased from its 2022 peak, it remains slightly above the 2% target. This decision comes amid political pressures, with President Trump criticizing the Fed for not implementing deeper rate cuts to stimulate economic growth.

Ralph’s Take

The Fed’s decision to keep rates steady comes as no surprise, with little impact on the mortgage market. Its focus remains on the labor market, but inflation remains a…

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On Wednesday, the Federal Reserve made an unexpected move by cutting its target interest rate by 0.50 percentage points (or 50 basis points). This was the first rate cut in 1,650 days. During this time, we saw:

  • 11 rate increases since early 2022.

  • Mortgage rates peak at nearly 8% in October 2023.

  • Existing home sales plummet to 1995 levels.

  • Home affordability hit a 40-year low.

This is expected to be the beginning of a rate-cutting cycle, with further reductions expected later this year and into 2025.

How the Fed Rate Cut Impacts Housing

The Federal Reserve's decision to cut interest rates is generally positive for the housing market for several reasons:

Mortgage…

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The "Mortgage Rate Lock-In Effect”

A recent Redfin article delved into the "mortgage rate lock-in effect”, where homeowners are reluctant to sell their homes due to their advantageous low mortgage rates - which is intensifying the housing shortage. As we mentioned in July, 86% of mortgages have an interest rate below 6%, but that has been gradually decreasing over the past two years (93% in 2022, 91% in 2023, 86% this year).

Current percentage of mortgages with:

  • Rates Below 6%: 85.7% (down from 92.8% in 2022)

  • Rates Below 5%: 76.1% (down from 85.6% in 2022) 

  • Rates Below 4%: 57.4% (down from 65.3% in 2022) 

  • Rates Below 3%: 22% (down from 24.7% in 2022)

Ralph’s Take

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Visual of the Week 

How Mortgage Rate Changes Affect Your Purchasing Power

It’s important to know how mortgage rates can affect your monthly payment. Because even a slight change in rates can have a big impact. Overall, rates have been trending down lately. So, this could be your chance to make your move a reality. Send me a message today if you want to talk about starting your search.


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Mortgage Rates Plunge to Lowest Level in More Than a Year

Mortgage rates fell to 6.34% on Monday, the lowest since May 2023. Today, they’re at 6.54%, still showing a notable shift from last year’s peak of 8% in October and November, which significantly affected the housing market last year. The Mortgage Bankers Association’s (MBA) Weekly Applications Survey reports that mortgage application volume has now reached its highest level since January 2024. The Market Composite Index, reflecting mortgage loan application volume, increased by 6.9% on a seasonally adjusted basis from the previous week.

  • The 10-year Treasury yield dipped to 3.76%, the lowest since June 2023.

  • The 2-year Treasury yield slid to 3.88%, raising…

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