The 30-year fixed mortgage rate currently sits at 6.88% according to recent data from Zillow. And the expectation is that the Federal Reserve will stay the course and not cut interest rates in next week’s FOMC meeting.
While the mortgage rate has remained high over the past year, there is an expectation that the mortgage rate will eventually head downward, said Vivian Gueler, CFO of Pacific Trust Group, a mortgage and loan company. But with many people choosing to refinance mortgages at historically low rates during the pandemic, homeowners are hesitant to move and take on the current higher rate.
“When there’s uncertainty, we’re all just going to sit tight and kind of wait for things to play out,” said Gueller.
Marketplace host Kai Ryssdal spoke with Gueler about the current state of the mortgage industry and rate expectations for the remainder of the year.
Click the audio player above to hear the story.