We’re still seeing mortgage rates lingering near 7%, and the outlook suggests this could persist through the end of the year. Affordability remains a challenge for many, especially as inflation continues to put pressure on the Fed’s decisions. If inflation doesn’t cool, there’s even a chance of another rate hike, which—along with wider MBS spreads—could push borrowing costs even higher. For rates to drop in any meaningful way, we’d need to see steady progress on inflation, more stable long-term yields, a supportive stance from the Fed, and healthier mortgage-backed securities spreads. For those buying, investing, or refinancing, it’s wise to plan around today’s rates and treat any future relief as a welcome bonus. As someone who works closely with buyers and investors in the Seattle area, especially in bank-owned and distressed properties, I’m always keeping a close eye on these trends to help you navigate your options with clarity.
Leave a Reply