Mortgage interest rates have been climbing in recent months. Just recently, the 30-year fixed mortgage rate from Freddie Mac approached 4% for the first time since spring 2019. That climb has dropped slightly over the past few weeks, to about 3.75%.
Economic experts say that the growing uncertainty around geopolitical tensions surrounding Russia and Ukraine is expected to influence this recent decline in interest rates. Like the weeks following the Brexit vote in 2016, the US Treasury Bond yield declined and led to a corresponding drop in mortgage rates.
The 10-year treasury yield has a long-standing relationship with mortgage rates and is often considered a leading indicator of where rates are headed. Basically, events overseas can have an impact on mortgage rates here, and that’s what we’re seeing today.
While no one has a crystal ball to predict exactly what will happen with rates in the future, experts agree this slight decline is temporary. Rates are expected to stay low in the short-term but will likely renew their climb in the months to come.
Those in the market to buy a home in Redondo Beach are wise to do so before rates rise again. Mortgage rates are important as they determine the amount of one’s monthly mortgage payment.
Connect with Dennis Hartley today for up-to-date information on rates and trusted advice on how to time your next move.