This week brought a mix of small interest rate changes and lots of conversations about where the market is headed. Here is what you need to know this week:
- The Federal Reserve is undecided. They are trying to balance slowing job growth with prices that are higher than they would like. Their next decision could impact where rates go.
- Rates increased very slightly. The 10 year Treasury, which helps guide mortgage rates, moved from 4.25% to 4.28%. A small move but worth watching. There wasn’t much movement in mortgage rates, but we did see a very slight change.
- Refinances are picking up. As rates eased from earlier this month, more homeowners jumped to see if they could save money! Some are doing cash out refinances to pay off home equity lines and credit card debt.
- Mortgage applications fell 1.4% last week likely tied to the Treasury yield increase.
- Tariff and trade pressures are slowing global exports. Japanese exports dropped 2.6% yea-over-year and EU exports to the U.S. fell 10% in June. These trends could influence the U.S. market in the weeks ahead.
The biggest update this week comes on Friday when the Federal Reserve Chairman speaks at the Jackson Hole meeting in Wyoming. Everyone will be listening for clues on what direction the Fed is going. More than likely he will not say much more than watching for reports on jobs and inflation, but we’ll see.
For anyone thinking about buying now and debating on waiting, if interest rates do drop, more than likely home prices will go up with more buyers looking. If nothing else, it may cause more multiple offers making it harder to get your offer accepted. You may be able to save money now by buying sooner than later. Please reach out and we can talk about options for you.
Leslie Vanderwerf, NMLS ID#335509, CrossCountry Mortgage LLC, An Equal Housing Lender, NMLS#3029 – Email – Website
