Mortgage Rates Moving Lower! May 25, 2022

For the past two weeks mortgage rates have been moving downward, ever so slowly.  But this is often the case.  Mortgage rates generally rise much faster than they go down.  Compared to how much they have gone up (about 2.5% over the last 3 months) the .25% move lower isn’t much, but we will take it.

Does that mean mortgage rates have hit a ceiling?  That we won’t see more higher movement?  Well, to answer that, let’s look at what has caused rates to go up and what caused them do recently drop.  The dropped this past week or two mostly because of the drop in the stock market.  As money moves out of stocks, it moves into bonds.  That will almost always bode well for mortgage rates.  But mortgage rates moved higher because of inflation.  And it remains to be seen if inflation is still a threat, or beginning to moderate.  The inflation readings over the next few weeks and months will decide the fate of mortgage rates.