The 10-year Treasury note dropped below 3% on June 30. The average mortgage interest tends to post at 2.20% higher than the 10-year note, so today Fannie and Freddie rates at 5.7% is an indicator that the mortgage market is pricing in the expected Federal Reserve’s increase of 50 basis points later in July. If that is true, mortgage rates may settle at 6% or less as we move into the fall.
Novella Real Estate