Mortgage rates hit a five-week low at 6.77%, with signs of stability since April, despite low home sales. Federal Reserve Chair Jerome Powell's caution regarding interest rates amidst mixed economic signals influenced market reactions. The recent Consumer Confidence Index decline raises concerns about homebuyer intentions, signaling hesitation in making significant financial commitments. Overall, the current market presents both challenges and opportunities as buyers navigate inventory dynamics and the economic landscape.
"Borrowers should find comfort in the stability of mortgage rates, which have only fluctuated within a narrow 15-basis point range since mid-April," says Sam Khater, Freddie Mac's chief economist.
"While recent employment and inflation figures suggest a gradual cooling, consistent with the Fed's goals, newly imposed tariffs have introduced fresh upside risks to inflation," says Realtor.com® Senior Economic Research Analyst Hannah Jones.
In his June 24 testimony before the House Financial Services Committee, Powell reiterated the "wait-and-see" stance on interest rate cuts outlined during the latest Federal Open Market Committee (FOMC) meeting last week, signaling caution amid mixed economic indicators.
The Consumer Confidence Index unexpectedly dropped in June, with surveyed households expressing concern over both current business and labor market conditions, as well as anxiety over the economic outlook.
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