Rates this week…

Fed raises .25%… Mortgage rates improve

The Federal Reserve raised interest rates by 25 basis points for the 10th time since they began the current hiking cycle in early 2022. They also hinted that this might be the last one for a while… which was well received by the interest rate market. Rates improved by .125% - .25% for most borrowers throughout the week.

Fed rates and Mortgage rates are like apples and oranges - They are not directly related to each other. Mortgage rates more closely follow inflation and as we continue to see inflation inch lower, we will see mortgage rates do the same.

Home prices remain stable

According to Black Knight, 93 of the 100 largest US housing markets experienced month-over-month home price increases between February and March.

5 months ago, 92 of the top 100 housing markets were showing declining prices.

The most significant gains occurred in the Mid West and East Coast markets, with sharp declines in Western and Southwestern markets.

Quick hits…

State Governments push to scrap LLPA changes: Officers from 27 State Governments have written a joint letter to the Federal Housing Finance Agency (FHFA), urging them to revoke the recent LLPA changes…more to come.

JPMorgan absorbs First Republic: The third failure of an American bank since March. It will get all of the bank’s deposits and a “substantial majority of assets.”

All Eyes on May 10: The next round of inflation data is released next Wednesday and is expected to be favorable for mortgage rates. Fingers crossed…

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