Mortage Rate News
With interest rates remaining elevated, we focus on disciplined exit strategies that prioritize certainty over speculation. By securing buyers early and underwriting around today’s market conditions, we aim to reduce risk and create predictable outcomes for our investors.
3 mins read | July 2026
June was the month the rate narrative flipped. We started the month at 6.48 percent sitting pretty, thinking maybe some relief was coming. The Fed met on June 16 and 17. They held steady at 3.5 to 3.75 percent as expected. But here’s what moved markets: Kevin Warsh signaled that a rate hike is back on the table if inflation doesn’t cool. The dot plot showed Fed members expecting rates higher by year end, not lower. Oil prices spiked because of the war in Iran. That pushed inflation to 4.2 percent in May, a multi-year high. Treasury yields jumped, and by the time Warsh’s press conference ended, lenders had repriced multiple times. We finished June sitting at 6.50 to 6.52 percent. Fannie Mae is now forecasting 6.4 percent for the rest of the year. The MBA thinks we hold 6.5 percent through 2027. Here’s what this means for T&T’s exit strategy: stop speculating on rate drops. Your end buyer at 6.5 percent has less buying power than at 6.0 percent. Your construction loan at 10.5 to 11.5 percent APR is bleeding you every month the project sits. If you’re banking on rates dropping to move inventory faster, you’re getting crushed by carry costs. The play now is locked pre-sales before dirt moves. Get the buyer committed and rate locked while you build, not hoping they show up at the end when rates haven’t budged. That’s the only exit strategy that works in this environment.
Written by Hammerhead Capital Inc
