With the government shutdown, economic reports have been missing which means mortgage rates have been fairly steady. Here’s what is going on in the mortgage world.-
- The 10 year treasury has stayed around 3.9% for more than a day which has helped keep mortgage rates flat. I did read an article that stated mortgage rates are the lowest they have been in a year. It does depend on your credit, income and down payment, but I have seen lots of buyers with rates in the mid 6’s without paying points! For some, you may be close to 6% or even high 5’s depending on loan type, etc.
- The September CPI report (inflation numbers for September) is scheduled to be released Friday despite the government shut down. The delayed report will give the Fed valuable information for their meeting.
- The CPI report is expected to show 3.1% year over year increase, pointing to the inflationary effects of the recent tariffs.
- The Fed is meeting next week and most traders are expecting a .25 point cut in rates. This is already priced into mortgage rates. The biggest change next week in rates could come from the comments after the Fed meeting. After the last Fed meeting, officials noted that the weakening labor market remains the main driver for future rate cuts. The Fed is still concerned about inflationary pressures.
Overall rates have been steady, slowly improving which is helping the market. Many homebuyers are still waiting, thinking that rates will drop more soon. We never know where the bottom is until it starts to go back up. The other main concern is that as rates drop, more buyers will enter the market. That could increase home prices as you get into multiple offers. It may make more sense to buy now and refinance if rates do come down enough. Plus by buying now, you start gaining equity in your new home!
For those thinking about buying, reach out and let’s talk about options for you. There are still temporary buydowns that can help your interest rate. You can always look at paying points to lower the rate, but I always look at how long it will take to recoup the cost of paying points. Remember we never know when home prices or interest rates are at their lowest, but if you find a home you love, let’s do what we can to get you into that home!
Leslie Vanderwerf, NMLS ID#335509, CrossCountry Mortgage LLC, An Equal Housing Lender, NMLS#3029 – Email – Website
