Mortgage Rates Decline, But Economic Concerns Grow

Rates for 30-year fixed mortgages reach four-month lows before slight increases, as economic indicators suggest a potential slowdown.

The 30-year fixed mortgage rate dropped to 6.63% this week, marking a notable decline from recent highs, though it ticked up slightly to 6.58% on Wednesday.
Economic data highlights a slowdown, with February job creation falling to 77,000 from January's 186,000 and retail sales declining by 0.9% in January.
Experts warn that ongoing tariffs and government job cuts are creating uncertainty, potentially leading to a recession in 2026.
Mortgage application activity increased by 20.4% last week, reflecting consumer interest during the rate drop.
Southern California economists predict stable or slightly rising home prices, with some forecasting mortgage rates in the mid-5% range by summer if economic conditions worsen.