Mortgage Rates Dip Despite Drop in Demand and Strong Labor Market

Mortgage interest rates for 15-year and 30-year fixed mortgages decreased, while 5/1 adjustable-rate mortgages slightly increased. The Federal Reserve may soon pause on rate hikes depending on incoming inflation data. Cooling inflation and positive signals from the Fed could ease upward pressure on mortgage rates. Homebuyers should focus on improving their credit score and saving for a down payment to increase their odds of qualifying for the lowest rate available. Mortgage rates are likely to decrease slightly in 2023, but rate volatility may continue for some time.