Mortgage rates rise drastically

According to government’s monthly employment report mortgage rates have risen to 6.53%.

Compared to September 17 as the day before the Federal Reserve lowered its benchmark rate by half a percentage point, that is 42 points higher.

Although there is no need to raise the alarm because taking a broader view, mortgage rates have decreased by 1.5 percentage points in the past 12 months, house price growth is decreasing, inventory is rising, and salaries are still rising.

However the data does slightly alter the expectation for rates moving forward, because most experts had anticipated a lower trajectory at this time of the year.

A number of factors affect mortgage rates, one of which is the bond market's response to the Federal Reserve's interest rate policy choices.

This has the potential to alter the 10-year Treasury yield's trajectory, which lenders use to determine how much to charge for house loans.

Experts are being careful with their next predictions since the report came out and urge people to make safe choices when they are considering lending to buy.

To be continued...