Continued uncertainty and volatility in both stock and bond markets have pushed mortgage rates even higher. According to Freddie Mac’s survey data of average rates, the range of rates for a 30-year fixed rate mortgage has more than doubled since this time last year. Ouch!
As we all know, though, people are still buying, selling, and moving homes. If that’s you or someone you know in the near future, what should you do?
For one thing, go easy on yourself. You’re rarely if ever going to “time” the market just right, and that’s okay. Fortunately, with mortgage financing, you can usually refinance to a lower rate if and when rates improve.
Know your options – As a broker, I can offer you the widest range of loan options. And, in contrast to the last time rates were this high, there are so many more unique and attractive options. My job is to know your goals and needs and find a mortgage that’s your best fit to achieve those goals.
So, yes, rates are higher than they’ve been in a while, but it is what it is, so let’s make the best of it for you. We have options! Ask me about the 2/1 buydown on purchases! Real estate is still appreciating and a very healthy sector of the market, so even if it costs a little more, returns are still healthy.
As for what’s happening in markets this week, this is what I’m watching…
It’s Jobs Week and it all kicks off Wednesday with ADP’s report on private sector job growth. ADP’s estimate for September is expected to be at 200,000, which would compare with actual growth in August of 308,000 and in July of 477,000.
Friday’s Jobs Report will be the highest impact report of the week and the month, for that matter. Expectations are for a 250,000 rise in new job growth in September which would compare with a higher-than-expected 315,000 rise in August. August was the fifth straight month and seven of the last eight that job growth exceeded expectations.
As for wage inflation, average hourly earnings in August rose 0.3 percent on the month and held at 5.2 percent on the year since June, which is still pretty hot. Earnings in September are expected to rise 0.3 percent on the month and 5.1 percent on the year.
I’ll be watching it all and report back next week!
