MORTGAGE CORNER
Great news... Mortgage rates have taken a dip!
Mortgage rates have fallen in March after rising through February... but why?
Well, it has to do with a couple of banks "failing" and how markets reacted to the news. It's likely you've heard about Silicon Valley Bank, and maybe Signature Bank, two banks that had to be saved by the FDIC a couple of weeks ago. Why they were in trouble is something that gets some debate, but one of the factors is the Fed hiking rates significantly and quickly over the last year. Markets believe that the Fed will not be able to continue to raise rates as it planned to and will even have to cut rates soon, or risk "breaking" sectors of the economy.
Is this really going to happen? That's up for more debate.
What IS happening though, is that markets have now adjusted to the idea that the Fed will have to pause its rate hiking, and will even have to start cutting rates later this year. This has helped mortgage rates recently.
How long will it last though? We don't know. If markets start to shift back to expecting the Fed to hike rates again, to fight inflation, we could see rates move higher again.
Don't miss out on these rates!
Connect with me today, and let me tell you all about it.
