{"id":7646,"date":"2022-03-08T06:00:52","date_gmt":"2022-03-08T11:00:52","guid":{"rendered":"https:\/\/blog.sfloridaluxuryhomes.com\/?p=7646"},"modified":"2022-03-08T06:00:52","modified_gmt":"2022-03-08T11:00:52","slug":"how-global-uncertainty-is-impacting-mortgage-rates","status":"publish","type":"post","link":"https:\/\/blog.sfloridaluxuryhomes.com\/?p=7646","title":{"rendered":"How Global Uncertainty Is Impacting Mortgage Rates"},"content":{"rendered":"
\n

\"How<\/p>\n

If you\u2019re thinking about buying<\/a> or selling<\/a> a home, you\u2019ll want to keep a pulse on what\u2019s happening with mortgage rates. Rates have been climbing in recent months, especially since January of this year. And just a few weeks ago, the 30-year fixed mortgage rate from Freddie Mac<\/em><\/a> approached 4% for the first time since May of 2019<\/a>. But that climb has dropped slightly over the past few weeks (see graph below<\/em>):<\/span><\/p>\n

\"How<\/a><\/p>\n

The recent decline in mortgage rates is primarily due to growing uncertainty around geopolitical tensions surrounding Russia and Ukraine. But experts say it\u2019s to be expected.<\/p>\n

Here\u2019s a look at how industry leaders are explaining the impact global uncertainty has on mortgage rates:<\/strong><\/h4>\n

Odeta Kushi, Deputy Chief Economist at First American, <\/em>says<\/a>:<\/p>\n

\n

\u201cWhile mortgage rates trended upward in 2022, one unintended side effect of global uncertainty is that it often results in downward pressure on mortgage rates<\/strong>.\u201d<\/em><\/p>\n<\/blockquote>\n

In another interview<\/a>, Kushi adds:<\/p>\n

\n

\u201cGeopolitical events play an important role in impacting the long end of the yield curve and mortgage rates<\/em><\/strong>. For example, in the weeks following the \u2018Brexit\u2019 vote in 2016, the U.S. Treasury bond yield declined and led to a corresponding decline in mortgage rates.\u201d<\/em><\/p>\n<\/blockquote>\n

Kushi\u2019s insights are a reminder that, historically, economic uncertainty can impact the 10-year treasury yield<\/a> \u2013 which has a long-standing relationship with mortgage rates and is often considered a leading indicator of where rates are headed. Basically, events overseas can have an impact on mortgage rates here, and that\u2019s what we\u2019re seeing today.<\/p>\n

Will Mortgage Rates Stay Down?<\/strong><\/h4>\n

While no one has a crystal ball to predict exactly what will happen with rates in the future, experts agree this slight decline is temporary. Sam Khater, Chief Economist at Freddie Mac<\/em>, echoes Kushi\u2019s sentiment, but adds<\/a> that the decline in rates won\u2019t last:<\/p>\n

\n

\u201cGeopolitical tensions caused U.S. Treasury yields to recede this week . . . leading to a drop in mortgage rates. While inflationary pressures remain, the cascading impacts of the war in Ukraine have created market uncertainty. Consequently, rates are expected to stay low in the short-term but will likely increase in the coming months<\/strong>.\u201d<\/em>\u00a0<\/em><\/p>\n<\/blockquote>\n

Rates will likely fluctuate in the short-term based on what\u2019s happening globally. But before long, experts project rates will renew their climb. If you\u2019re in the market to buy a home, doing so before rates start to rise again may be your most affordable option.<\/p>\n

Bottom Line<\/strong><\/h3>\n

Mortgage rates are an important piece of the puzzle because they help determine how much you\u2019ll owe on your monthly mortgage payment in your next home. Let\u2019s connect so you have up-to-date information<\/a> on rates and trusted advice on how to time your next move.<\/p>\n

Content previously posted on Keeping Current Matters<\/p><\/div>\n","protected":false},"excerpt":{"rendered":"

\"HowIf you\u2019re thinking about buying or selling a home, you\u2019ll want to keep a pulse on what\u2019s happening with mortgage rates. Rates have been climbing in recent months, especially since January of this year. And just a few weeks ago, the 30-year fixed mortgage rate from Freddie Mac approached 4% for the first time since [\u2026]<\/div>\n","protected":false},"author":3,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"bgseo_title":"","bgseo_description":"","bgseo_robots_index":"","bgseo_robots_follow":"","footnotes":""},"categories":[3,84,85,86,118],"tags":[],"class_list":["post-7646","post","type-post","status-publish","format-standard","hentry","category-blog","category-for-buyers","category-for-sellers","category-housing-market-updates","category-interest-rates"],"_links":{"self":[{"href":"https:\/\/blog.sfloridaluxuryhomes.com\/index.php?rest_route=\/wp\/v2\/posts\/7646","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/blog.sfloridaluxuryhomes.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/blog.sfloridaluxuryhomes.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/blog.sfloridaluxuryhomes.com\/index.php?rest_route=\/wp\/v2\/users\/3"}],"replies":[{"embeddable":true,"href":"https:\/\/blog.sfloridaluxuryhomes.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=7646"}],"version-history":[{"count":0,"href":"https:\/\/blog.sfloridaluxuryhomes.com\/index.php?rest_route=\/wp\/v2\/posts\/7646\/revisions"}],"wp:attachment":[{"href":"https:\/\/blog.sfloridaluxuryhomes.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=7646"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/blog.sfloridaluxuryhomes.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=7646"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/blog.sfloridaluxuryhomes.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=7646"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}