There is no way to know how Russia’s invasion of Ukraine will influence mortgage rates. With the United States still being considered a financial safe haven, many investors will put money in the U.S. bond markets, also known as “flight to quality”. If the demand for our bonds increases then rates will continue to remain low.

However, we also have the inflation factor to consider. With inflation looking like it’s going to stick around for awhile, the Fed really has no choice but to raise rates this month. The speed in which they raise rates may be influenced by the situation in the Ukraine, but the Fed really has no choice but to start raising rates.

One thing is for sure, we will probably continue to see some volatility in our markets, including mortgage rates. Any decline in mortgage rates is likely to be temporary. The war in Ukraine will add to inflationary pressures due to Russia’s large influence in the oil, wheat and corn markets. Russia is the largest wheat exporter in the world.

Trying to predict where mortgage rates will go over the next few months will more challenging than normal. If you are considering buying a home or refinancing your mortgage, contacting an experienced California Mortgage Broker is a great first step. A mortgage professional can help you determine the best time to lock in your mortgage loan rate.