What’s Going On With Mortgage Rates? (Explain-It-to-a-5th-Grader Version)

What’s Going On With Mortgage Rates? (Explain-It-to-a-5th-Grader Version)
Think of rates like a bus ticket. When more riders choose the “bond bus,” tickets get cheaper and mortgage rates go down. When riders hop off (because the economy looks strong), tickets go up and so do rates. The Fed doesn’t set the ticket price—investor feelings do.

Why rates just bounced:
• The Fed cut, but Powell said a December cut isn’t a sure thing → investors cooled off → rates nudged higher.
• A big $15B corporate bond sale added supply → pushes yields (and rates) up.
• Some reports (ADP/ISM) came in a bit stronger → fewer/farther-out cuts expected.
• Freddie Mac’s weekly average looked lower, but it missed the late-week jump.

Where we are now:
The average 30-year fixed is near ~2-month highs, but still below this year’s peaks. Expect ups and downs while markets “wait and see.”

For buyers/homeowners:
• Find a payment you like? Consider locking; ask about float-down options.
• Refinancing? Do a quick savings vs. breakeven check.
• Be ready: pre-approval + a plan helps you move when windows open.

Have questions or want to talk through your options? Just fill out the contact form on this page or give me a call—I’m here to help.

Source: Mortgage News Daily