Sure, here’s the re-written article:
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So, mortgage rates, huh? Seems like they’re on this never-ending rollercoaster that just keeps clicking upwards—like this weird thing that started when tariffs got jacked up back in April. Can’t make this stuff up.
Anyway, those tariffs? Whether they stick around or not (legal mumbo-jumbo pending), they’ve already nudged interest rates higher over April and May. The 30-year fixed-rate mortgages? Yeah, they’ve been chillin’ above 6.75% since mid-April. Spoiler: Folks are kinda struggling with this—affordability is a buzzkill. And oh, house prices are doing their own dance—some places, like parts of Texas and Florida, are actually seeing drops. Go figure.
Now, about these long-term interest rates. Brace yourself; they might keep creeping up for a bit. Joseph Brusuelas (ever heard of him? No? Me neither until this) from RSM US talked about it. He’s got this blog thing called The Real Economy, where he rambles on about how 30-year bonds and mortgage rates are going up ’cause of populist economics and globalization doing a slow fade-out.
He’s seeing this gap widening between the 30-year and 10-year bonds—like the economy’s gearing up to grow faster, stir up inflation, and demand more from the Federal Reserve. It’s wild. So yeah, don’t hold your breath for any major rate drops soon.
Now, let’s switch gears. Fannie Mae and the Mortgage Bankers Association had their crystal balls out—predicting mortgage rates around 6.5% to 6.7% from April to June. But unless June decides to play nice and throw us a curveball, those predictions might be wishful thinking. Rates haven’t budged much below 6.75% since November—like a stubborn mule.
Oh, and the Federal Reserve? They’re like that undecided friend who needs a minute—or a hundred. Jerome Powell, the Fed Chair, in a recent gabfest kept tossing the word “uncertainty” around like confetti (eight times, if you’re counting). They’re in watch-and-wait mode, looking to see if the economy’s gonna faceplant into recession or get smacked by inflation. Their next meeting? Mid-June. Expect them to just sit tight on those short-term rates.
Meanwhile, house prices are on this wacky ride too. Nationwide, they’re up 4% since early 2024, but that’s a tad slower than their previous sprint. Newark, NJ, saw prices explode by 11.6%. But Lakeland-Winter Haven, Florida didn’t get that memo—they’re down 9%.
The S&P CoreLogic Case-Shiller Index has some thoughts—says there’s a broad cooling trend, kind of like how iced coffee seems less appealing in winter. With high mortgage rates making potential buyers hide behind their wallets, demand’s slipping. But with a tight supply of homes, prices aren’t dropping everywhere.
Florida’s facing a dip in condo markets, and Texas is wrestling with too much new construction. Everyone’s kinda stuck trying to afford anything as rates hover high. Homes are just sitting there—unsold—and more sellers are caving on their asking prices.
Remember what I said back in April? Thought rates would do this pogo-stick thing in May—up, down, all around. But yeah, they just bounced a little here and there. Freddie Mac’s data says the average rate for May was 6.82%, up from April’s 6.73%. Not totally shocking, I know.
And there you have it. The messy tale of mortgage rates and housing prices. Makes you want to throw your hands up and yell, “Why though?” But then again, here we are.
