Mortgage rates have a quiet week as markets digest Fed comments, Trump’s directive

Mortgage rate movement was largely flat in the past week, with the downward momentum of previous weeks cooling off even as more potential homebuyers have been incentivized to seek financing. At HousingWire’s Mortgage Rates Center on Tuesday, rates for 30-year loans averaged 7.38% — the same as one week ago. Rates for 30-year jumbo loans averaged 7.62%, down 7 bps in a week, while 30-year rates for Federal Housing Administration (FHA) loans stood at 7.16%, down 8 bps. The small declines in rates come a week after the Federal Reserve held the federal funds rate at a range of 3.75% of 4% in a widely expected decision. But after policymakers hiked rates in September, further increases are anticipated, with the CME Group’s FedWatch tool showing that 77% of interest rate traders predict a 25-basis-point increase in December. More details from the Fed HousingWire Lead Analyst Logan Mohtashami wrote this week that tighter monetary policy “has created financial pain for some AI companies.” With the Fed focusing on the inflationary aspects of AI and associated debt-financing issues, the 10-year Treasury yield has been dropping, which has placed downward pressure on mortgage rates. Hector Ame...