Podcast: Mortgage rates… Will they level off in Q4?

Dr. Kuehl started off the podcast by telling members that mortgage rates will most likely never go back down to 2%... the lowest we may see is around 5% or 6%. The Fed’s rate decisions are mostly advisory, this doesn’t really trigger anything else. Rate reductions will maybe happen in the late third quarter. But the two things that would sway the fed for rate reductions would be consistently high job creation and inflation numbers.
 

Chris tells members that inflation still exists, and it’s in the service sector. This is wage driven – sticky inflation and very hard to bring that down. Wages do not come down easily, and there is still a worker shortage. The Fed looks at all of this and determines rates. We will not see rates go down to 3% or 4%, the long-term market will not take it that low, but we can see a consistent 5% or 6%, but it will be different with the variety of the housing market.
 

Dr. Kuehl produces three free economic update podcasts each month for ASA members (on Friday mornings). The podcasts are available in the MyASA portal at www.asa.net/myasa and through all traditional podcast hosting platforms.
 

LISTEN NOW
 

Have a question or topic for Chris Kuehl that you would like answered on this podcast? Email it to Bri Baresel at bbaresel@asa.net.