Just when we thought mortgage rates were on a one-way trip to the sky, they've thrown us a curveball. Last week, we were looking at a pretty steep 7.92% for the average 30-year fixed mortgage rate. Fast forward to today, and it's like we're in a whole new world – and a much better one for anyone thinking about buying or selling a home!
We saw something similar last November when rates had shot up to new highs before some unexpectedly good economic news came along and gave them a nudge back down.
Last year, it was a surprisingly low inflation report that got everyone's hopes up. But that turned out to be a bit of a tease, and rates didn't really start to come down until February 2023. Since then, it's been mostly uphill.
This week, though, we've got a whole bunch of different stuff shaking things up. It all started on Wednesday when the Treasury said they'd be auctioning off fewer bonds than expected (and fewer bonds usually mean lower rates). Then we got some economic data and a Fed announcement that kept the good news rolling.
Thursday was a bit quieter, but it still helped keep rates on the downward slope, thanks in part to a slight bump in Jobless Claims. And when traders started backing off their bets on higher rates, it was like they were actually betting on rates to go down.
This week's jobs report was the real wild card. If it had shown a bunch of new jobs, we might've thought this whole rate drop was just getting carried away. But instead, the report was kind of meh – fewer jobs than expected, a tick up in unemployment, and some downward revisions to past months.
These past three days have been some of the best news for mortgage rates and bonds we've seen in a long time. Sure, the big drop has a lot to do with how high rates were to start with, but hey, we're not complaining.
Right now, the average rate for a top-notch 30-year fixed mortgage is back under 7.5%. Some lenders are already dipping into the high 6's, while others are still up around 8%. Our preferred lender tends to be a little lower than the average so we're seeing rates between 7% - 7.25% depending on credit and other factors.
So, what's all this mean for you? If you're in the South Florida real estate game, whether you're buying or selling, it's super important to stay in the know about mortgage rates.
Keep your eyes peeled for our updates, and we'll make sure you've got all the info you need to make smart moves in the South Florida real estate market.
Posted by Andy Mandel on