February 19th, 2025 - Director of Mortgage Lending, Rick Ball, Featured in G.P. New Home Interview
February 19th, 2025 - Rick Ball, Vice President and Director of Mortgage Lending at Community Bank, recently shared his insights in an exclusive interview with Greater Pittsburgh New Home. During the interview, Mr. Ball discussed his expectations for the mortgage market in 2025.
“Unfortunately, there’s a belief that the Fed rate has a direct impact on mortgage rates," said Ball. “The Fed rate impacts the bond market, and the bond market is what impacts mortgage rates. There are many factors that influence the bond market. It is far better for someone to track the 10-year Treasury to anticipate what mortgage rates will do.
When everybody thinks the market is going to move a certain way and it doesn’t, there is a knee-jerk reaction. I think that’s what we have seen since September.
If you had asked me in August, I would have expected we would finish in the high fives in 2025. Now, looking at all the factors, I feel the rates will be above six percent for 2025. We may see the low sixes by the end of 2025, We would really need some significant changes in the overall economy and we’re not seeing that. We’re still seeing a stable job market. We’re not seeing the changes we would need to see to bring confidence to the bond market."
“Unfortunately, there’s a belief that the Fed rate has a direct impact on mortgage rates," said Ball. “The Fed rate impacts the bond market, and the bond market is what impacts mortgage rates. There are many factors that influence the bond market. It is far better for someone to track the 10-year Treasury to anticipate what mortgage rates will do.
When everybody thinks the market is going to move a certain way and it doesn’t, there is a knee-jerk reaction. I think that’s what we have seen since September.
If you had asked me in August, I would have expected we would finish in the high fives in 2025. Now, looking at all the factors, I feel the rates will be above six percent for 2025. We may see the low sixes by the end of 2025, We would really need some significant changes in the overall economy and we’re not seeing that. We’re still seeing a stable job market. We’re not seeing the changes we would need to see to bring confidence to the bond market."
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