Mortgage rates fall sharply after negative GDP report and Fed’s latest hike

By: Lexi Malen

Often mortgage rates “bake in” expected fed rate hikes, meaning that the mortgage markets take the expected news and mortgage rates push up before the fed announcements.  In this case rates moved up pretty quickly before and maybe too sharply, thus there has been a brief retreat in mortgage rates.  I do not expect it to last as all market indicators for the next 90 days would say there is more upward pressure on rates.

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Article: Mortgage rates fall sharply after negative GDP report and Fed’s latest hike.

Source: CNBC.com

Article Highlights

  • The average rate on the popular 30-year fixed mortgage fell to 5.22% on Thursday from 5.54% on Wednesday.
  • The slide in mortgage rates came after a negative GDP report and the Fed’s latest interest rate hike.
  • The drop Thursday also came on the heels of the Bureau of Economic Analysis’ gross domestic product report, which showed the U.S. economy contracted for the second straight quarter.

 

Read Full Article on CNBC.com

 

 

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