Archived post: figures and the chart below reflect mortgage rate data from February 2024, not current rates. For today's rates, let's connect.
Are you feeling a bit unsure about what's really happening with mortgage rates? That might be because you've heard someone say they're coming down. But then you read somewhere else that they're up again. And that may leave you scratching your head and wondering what's true.
The simplest answer is: what you read or hear will vary based on the time frame they're looking at. Here's some information that can help clear up the confusion.
Mortgage Rates Are Volatile by Nature
Mortgage rates don't move in a straight line. There are too many factors at play for that to happen. Instead, rates bounce around because they're impacted by things like economic conditions, decisions from the Federal Reserve, and so much more. That means they might be up one day and down the next depending on what's going on in the economy and the world as a whole.
Take a look at the graph below. It uses data from Mortgage News Daily to show the ebbs and flows in the 30-year fixed mortgage rate since the prior October:
If you look at the graph, you'll see a lot of peaks and valleys, some bigger than others. And when you use data like this to explain what's happening, the story can be different based on which two points in the graph you're comparing.
For example, if you're only looking at the beginning of the month through now, you may think mortgage rates are on the way back up. But, if you look at the latest data point and compare it to the prior peak, rates have trended down. So, what's the right way to look at it?
The Big Picture
Mortgage rates are always going to bounce around. It's just how they work. So, you shouldn't focus too much on the small, daily changes. Instead, to really understand the overall trend, zoom out and look at the big picture.
When you look at the highest point compared to where rates are now, you can see they've come down compared to the year before. And if you're looking to buy a home, this is big news. Don't let the little blips distract you; the experts agree, overall, that the larger trend is what matters most.
Bottom Line
Let's connect if you have any questions about what you're reading or hearing about the housing market, or want to know where rates actually stand today.
Dan N Stach, REALTOR® with eXp Realty (Stach Realty). License S.194003.
Serving Reno, Sparks, and Northern Nevada.
Call (775) 412-5692 or visit StachRealty.com.
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