Why are mortgage rates still trending up?

The Federal Reserve has cut interest rates twice this year, but mortgage rates have yet to follow instead mortgage rates have been steadily climbing So what's behind this unexpected trend 90s real estate expert lay lion joins us once again this morning to break it all down Lane is a realtor and managing broker at Coldwall Banker. Thanks for coming in. Hey, good morning Thanks for having me on on a Monday. Yeah, this is such a good question. I've wondered this myself So let's talk about why mortgage rates keep creeping up instead of trending downward Hey, we've definitely seen some volatility when it comes to mortgage rates It's like they'll dip down just a little bit then pop back up, you know, Corey I liken it kind of to that bathroom scale It'll just come down a little bit and then unfortunately next time we check it's a little bit higher Now it has nothing to do with polishing off the Halloween candy Some well instead though We've got some economic factors that we're keeping a close eye on things like consumer spending and job growth These are both indicators of a stronger economy which on the surface sounds good We'll take that but it could also suggest that in inflation could start creeping up again And so when that happens, we see the bond yield go up mortgage rates are closely tied to the bond market So that's why we see this activity where it is right now So what are you seeing and how is this translating to buyers and sellers? Well home sellers are taking a little bit longer to get their home sold and they're having to be a little bit more flexible right now when it comes to pricing when it comes to inspections and Helping buyers buy down interest rates now There are opportunities right now because of that for buyers But I am cautioning buyers that if you are doing a temporary rate buy down You can get your rates down into the 4% range with some programs, but keep in mind I want you comfortable with your mortgage payment right now Because they will start to adjust back up and if you're not ready to refinance yet Your mortgage rates are going to be a little bit higher But keep in mind of the Denver market still continues to move we have people who are still having babies They're outgrowing their houses. Sadly, they're getting divorces and there this has nothing to do with mortgage rates So having some strategy really makes a difference. So what's the outlook now moving forward? Will we see mortgage rates come down as many experts had thought it would well I think there's still optimism that we'll see mortgage rates trend downward in 2025 But there is also some chatter behind the scenes with lenders as well With a couple of economic policies that President-elect Trump has been talking about on the campaign trail Having to do with trade having to do with tax cuts This is not a political debate But instead an observation that the markets are starting to price some of that anxiety into time will tell how all of that shakes out So we'll just have to wait and see but in the meantime Make sure that if you are in the market that you really have a trusted advisor to help you know what to do and I Had a buyer out yesterday and we wrote an offer and he's super excited So it just it's just again having a plan and knowing what you're doing my how things continue to change Oh gosh, I'll tell you what, you know every day. It's a little bit different, but that's why we're here Yes, well appreciate it as always Lane. Thank you. Got it