Mortgage rates are higher today after several days of back-and-forth movement. Rates shifted leading up to Wednesday’s Fed decision and have continued to move as markets sort through what comes next.
Attention has now shifted to the Fed’s next steps, oil, inflation, and global interest rates for clearer direction on mortgage rates.
The Fed raised its short-term rate Wednesday and continued to emphasize inflation. Oil prices have eased from recent highs, which may help reduce some inflation pressure.
Today, the Bank of Japan also raised interest rates, but the market reaction added some pressure to U.S. mortgage pricing.
Pending home sales were little changed in August, showing housing activity remains steady even with higher mortgage rates.
What This Means
Mortgage rates remain responsive to market changes and can move quickly from one day to the next, and sometimes during the same day. Fed decisions do not always translate directly into lower or higher mortgage rates.
Lower oil prices are encouraging, but markets are still looking for clearer signs on inflation and future Fed policy.
Miguel Terrazas
Mortgage Planner/Planificador Hipotecario // NMLS #227518
