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The market had become all but impenetrable after mortgage rates went from historic lows in 2020 to their highest levels in a generation last year. “And I think if we even go down to 5.9%, that would be really psychologically impactful to the housing market. The current 6.2% mortgage rate average is, of course, preferable to last year’s peak of 7.8% — a difference that could translate to hundreds of dollars in monthly payments. As my colleague Samantha Delouya wrote this week, a drop in mortgage rates could be a double-edged sword. “A further drop in mortgage rates could bring a surge of demand that makes it tougher to actually buy a house.”
Persons: ” Daniel Alpert, Alpert, , ” Daryl Fairweather, Samantha Delouya, , Greg McBride Organizations: New, New York CNN, Federal Reserve, Westwood Capital, Fed, Bankrate Locations: New York
New York CNN —One week ago, right in this here newsletter, I wrote about how Wall Street was having a Zen moment. In the optimistic camp: “The bank crisis-ette is over,” Daniel Alpert, managing partner at Westwood Capital, told me. And it will be the first time the world hears from Fed officials since the collapse of Silicon Valley Bank, thanks to a cosmic twist of timing. But because of the banking turmoil, there is a chance the Fed would decide not to raise rates this time around. If the Fed feels the crisis has passed, Alpert said, it will be emboldened to go for the quarter-point hike.
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