Facts: The average 30-year fixed mortgage rate from Freddie Mac jumped to 6.32% this week from 6.12% last week. At 6.32%, with 20% down, a monthly mortgage payment is $1,985 on a home with a price of $400,000. With 10% down, the typical payment would be $2,233.

Positive:  Mortgage interest rates are up, so seeing the positive can be hard. However, CPI inflation is also out today, at the lowest level since February 2021. Shelter, which is 30% of CPI, has been persistently high but declined to a level last seen in February 2022.

Negative:  Home buyers, especially first-time buyers, are extremely sensitive to mortgage rates, and the increase in rates helps to explain the retreat in mortgage applications. While inflation has cooled, that does not mean the price of goods has dropped; they are just not increasing.

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