📉 Mortgage Rates Just Changed — and It’s Not Because of the Fed!
As of May 7, the average 30-year fixed mortgage rate slipped to 6.86%, down from 6.88%. 👀
But don’t give the Fed credit—this dip has more to do with investor expectations and shifts in the bond market than anything Jerome Powell said. 😉
Here’s the simple version:
📊 Mortgage rates move in sync with bond yields
🧠 Lenders price based on what they think is coming
🌦️ If investors expect the Fed to cut rates later, mortgage rates can fall now—they’re pricing in the forecast before the storm hits (or clears)
💡 Bottom line: It’s not just about what the Fed does—it’s what the market thinks they’ll do.
🔍 Why This Matters:
Even a small drop in rates can impact your buying power and monthly payment. If you're on the fence about buying or refinancing, this could be the nudge you need.
📲 Let’s run the numbers and see if locking in now makes sense for you.
📌 Side Note Update (May 8):
Mortgage rates bumped back up after the U.S.–U.K. trade deal announcement. 📈
Markets reacted to the deal as "good for stocks, bad for bonds"—which pushes rates higher. Bonds are also weighing inflation, foreign demand, and future borrowing needs.
👉 Translation? Mortgage rates are sensitive to more than just the Fed, and can change quickly based on global events. That’s why having a rate-lock strategy is so important.
Source: Mortgage News Daily
