Mortgage rates fell as bond yields dropped in response to lower-than-expected inflation data

  • Wall Street is lowering expectations for future Federal Reserve rate hikes.
  • The 30-year fixed mortgage rate dropped from its recent high of over 8% to 7.40%.
  • Homebuyers are sensitive to rates, with some unable to afford a home or qualify for a mortgage.
  • Home sales have been falling for several months, leading some to believe the market is frozen.
  • The bond market is reacting as if the Fed will cut interest rates next year.
  • Chief economist for the National Association of Realtors predicts mortgage rates to head towards 7% in a few months and into the 6% range by spring 2024.