Mortgage rates increased this week as investors digested all the commentary from the September Federal Open Market Committee meeting.
The yield on the 10-year Treasury, one of the benchmarks used in pricing mortgages, was at 4.19%, after closing Wednesday at 4.15% and at 4.1% on Sept. 18, the day after the FOMC meeting. On Sept. 16, the first day of the meeting, it closed at 4.03%.
Prior to the meeting, the markets were pricing into the 10-year "a more aggressive easing of monetary policy" than
"Mortgage markets are forward-looking — pricing in Fed moves ahead of time, similar to the pattern observed in September 2024, when rates initially dropped in anticipation but subsequently rose following the Fed's actual rate cut," Ng said. "Ultimately, incoming labor market and inflation data will determine the pace of future monetary policy changes."
This week's Freddie Mac rate survey results
The Freddie Mac Primary Mortgage Market Survey reported a 4 basis point increase in the 30-year fixed rate mortgage to 6.3% from
'Following several weeks of decline, mortgage rates inched up this week," said Sam Khater, Freddie Mac's chief economist, in a press release. "Housing market activity continues to hold up with purchase and refinance applications increasing by 18% and 42%, respectively, compared to the same time last year."
What other rate trackers found
The 30-year FRM as measured by Zillow's rate tracker was 11 basis points higher than a week ago as of 11 a.m. Thursday, at 6.58% versus 6.47%; but that was lower than Wednesday's 6.61%.
Lender Price data posted on the National Mortgage News website showed the 30-year at 6.44%, 2 basis points higher than at the same time one week ago.
Optimal Blue's data for Wednesday had the 30-year at 6.285%, up from 6.17% on Sept. 16.
The Mortgage Bankers Association's Weekly Application Survey, released Wednesday found the
"The ongoing decline in mortgage rates — now at their lowest point in a year — continues to boost borrower demand," said Bob Broeksmit, MBA president and CEO in a Thursday statement. "As mortgage rates move closer to 6%, we expect application activity to continue to increase."
The markets are watching for what happens next, as while the Fed has hinted at more rate cuts this year and next, it is dependent on inflation, gross domestic product and the broader economy, said Samir Dedhia, CEO of One Real Mortgage.
"If inflation stays sticky or economic growth surprises to the upside, we may see fewer rate cuts than markets are hoping for, which could keep mortgage rates elevated in the near term," Dedhia said. "For now, today's rates continue to offer a meaningful window of opportunity."
