Although the Fed raised policy rates at this week's meeting, mortgage rates improved when the Fed forecasted gradual future increases, calming markets.
The Fed's policy rate change will help tame inflation, which has been on the rise. Inflation can be a factor in increasing future mortgage rates.
The economy is expected to continue to grow, as supported by recent data. The labor market is strong and consumer confidence is improving.
Builder confidence in the housing market hit a 12-year high in March. Builders are anticipating helpful regulatory reform from the Trump administration.
Housings starts were up in February, helped by unseasonably warm weather. Single-family home construction surged 6.5% to a 9-1/2-year high.
Although permits for future home construction overall were down in February, permits for single-family homes actually increased 3.1% over January.
Rate movements and volatility are based on published, aggregate national averages and measured from the previous to the most recent midweek daily reporting period. These rate trends can differ from our own and are subject to change at any time.