#mortgage-rates

#mortgage-rates

"Oil prices rose initially, but have since retreated. It seems investors are still in wait-and-see mode—waiting to see whether there is an escalation of tensions."

Mortgage rates have remained stable amidst fluctuating economic conditions, with forecasts suggesting ranges between 5.75% and 7.25%, indicating a calmer market this year.

The Mortgage Credit Availability Index (MCAI) rose 2.1% in May to 105.1, indicating a loosening of credit supply. Government loan supply increased by 2.9% to its highest level since November 2022, driven by more FHA and VA adjustable-rate mortgages.

Despite the improved growth outlook, inflation expectations remain largely unchanged. The Consumer Price Index (CPI) is projected to rise 3.5% in 2025.

For Q2, analysts forecast EPS of $2.89 on $2.67 billion in revenue, both modestly down year-over-year, indicating challenges in the luxury housing market.

New figures show that even a small reduction in mortgage interest rates translates into substantial savings for borrowers, especially those on higher rates.

Mortgage spreads, the difference between 10-year Treasury yields and 30-year mortgage rates, have shown improvement since 2023, influencing positive trends in purchase applications.