Industry experts point to potential rate cuts by the Federal Reserve as a driving force behind the recent activity. Lenders appear to be pricing in these anticipated reductions, and market volatility may follow depending on the Fed’s decision.
“We could see additional short-term market volatility as the Fed considers a 25 or 50 basis point rate cut,” Andrew Rhodes, senior director and head of trading at MCT, said in the report. “Friday’s nonfarm payroll report will provide further clarity on that decision.”
Holden Lewis, home and mortgage expert at NerdWallet, also commented on the current rate environment.
“Mortgage rates held fairly steady this week, as the market awaits the Federal Reserve’s monetary policy meeting that occurs week after next. The Fed is expected to cut short-term rates, and mortgage rates already have dropped in anticipation of that,” Lewis said. “That means mortgage rates will remain relatively unchanged until the Fed meeting.”
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