Mortgage Rates: A Big Week Ahead

Mortgage rates have improved slightly over the last couple of weeks, with the average 30-year fixed rate around 6.65%, according to Freddie Mac. That's some welcome relief, but we're definitely not in a clear downward trend yet.

This week could tell us a lot more.

On Wednesday, we'll get the latest PCE inflation report, which is one of the Federal Reserve's favorite measures of inflation. Then on Friday, Fed Chair Kevin Warsh speaks at the annual Jackson Hole conference. Both events have the potential to move mortgage rates pretty quickly.

The good news is that we've started to see some signs of the economy cooling, and mortgage rates have come down slightly for two weeks in a row. The challenge is that inflation is still running higher than the Fed would like, and longer-term interest rates remain elevated.

So, should buyers wait for lower rates?

I wouldn't base a home purchase on trying to perfectly time the market. If you find the right home and the payment works for you today, we can build the loan around today's numbers.

If rates improve later, great. We can always look at refinancing.

And if you're already under contract, whether you should lock or continue floating really depends on your individual situation. Some buyers have plenty of room to take the risk, while others are better off protecting the payment they know works today.

As always, I'm happy to run the numbers and talk through the options with you!