Video
May 9, 2025
Airs live on YouTube
May 9, 2025
The Market’s Stuck on Rates. You Don’t Have to Be.
Market Update
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Mortgage rates didn’t move much this week. They’re still sitting just under 7%. But behind the scenes, there’s a lot going on that could lead to better news soon.
Here’s what’s happening:
The group that sets interest rates is trying to decide what matters more right now. Should they keep fighting inflation, or should they focus on signs that the economy is slowing down? For now, they’re stuck, waiting to see which way things go.
But waiting can be risky.
Back in 2021, when prices first started rising, they thought inflation would pass on its own. They waited too long to raise rates. By the time they acted, inflation had already spiked, and they had to raise rates quickly. That mistake made it harder for people to buy homes, and we’re still feeling the effects today.
A lot of homeowners got 3% mortgage rates during the pandemic. Now they’re not selling, because they don’t want to trade a 3% rate for a 7% one. That’s keeping inventory tight and prices high, even with higher rates.
At the same time, buyers are waiting too. Over 50% of mortgage applications this year have come from first-time buyers, but they’ve only made up 24% of actual purchases. That shows just how many people are sitting on the sidelines.
The good news? There are still great opportunities right now.
Inventory is rising. Some sellers are offering big closing cost credits. Buyers are negotiating rate buydowns and walking away with better deals.
If rates drop later this year, demand could rush back fast. That would bring more competition and possibly higher prices.
But buyers who act now could have the upper hand. Less competition. More room to negotiate. And a head start before the next wave hits.
This market may feel uncertain, but that doesn’t mean you have to stay stuck.
The right strategy can help you move forward with confidence.
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The information contained is the viewpoint of the presenter(s). Individuals should consult their own financial representative.
Estimated Mortgage Payment is for exemplary purposes only. Contact a licensed loan officer for exact numbers and APR. Additional rates and terms may apply and are subject to change without notice. Loan scenario assumes a purchase price of Zillow's list price and a 10% down payment. Points and fees not included. Property tax, homeowners insurance, mortgage insurance, and HOA fees are approximate and may vary. Other fees may apply. Product displayed is a conventional 30-year fixed rate mortgage using the current average rate as shown on Mortgage News Daily (mortgagenewsdaily.com).
Estimated Qualifying Income assumes a homebuyer has a FICO score above 740, no other credit debt, and a debt-to-income (DTI) ratio of 43%.
For exact numbers and APR or to run a loan scenario based on your own credit and income, contact our office at (858) 259-8700.
Rate Source: Mortgage News Daily. Rates displayed are approximate, subject to change, and do not necessarily reflect rates available to you. MND’s methods involve an objective component based on lenders' raw prices as well as a subjective impression from their network of originators. For more information about how these rates are calculated, visit www.mortgagenewsdaily.com/mortgage-rates/about.
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