Do you know what drives mortgage rates? It’s not the Fed…it’s inflation. And inflation has been improving, which has been helping mortgage rates improve. On May 10, we had an encouraging drop in the Consumer Price Index or CPI inflation report. But the good news is expected to continue!
Over the next two months, inflation is expected to improve further, which should help mortgage rates even more. Improving mortgage rates will increase buyer demand into a very tight inventory environment. It might be wise to get ahead of this positive news and act sooner than later on purchasing a home.
