I hope your week is going well! Between the Fed, the elections, and a busy jobs calendar, there is a lot happening, so let me sort out what matters most.
Here’s Where Rates Stand
Freddie Mac’s weekly average slipped again, down about a tenth of a percent to its lowest level this month, which gives buyers a little more purchasing power. It is still roughly a full percentage point above where it was a year ago. Daily rates hit their best levels in more than a month early this week, ticked up Tuesday on stronger job openings data, then improved again Wednesday.
The Fed Held Steady
The Fed left its benchmark rate unchanged, but two members preferred a hike, and December remains on the table. Remember, the Fed does not set mortgage rates. The 10-year Treasury, which mortgage rates follow, has been stuck near the 5 percent mark, and it needs to move convincingly lower before we see more relief. Bond markets also took Tuesday’s election results in stride, with no big reaction either way.
What to Watch Friday
The October jobs report is the big one. ADP’s private hiring estimate came in at 86,000 on Wednesday, ahead of the 70,000 expected, and economists are forecasting a modest gain on Friday. Strong numbers tend to push rates up, while softer numbers tend to bring them down. A few Fed speakers will also be weighing in.
For Homeowners, the Golden Handcuffs Are Loosening a Bit
Americans now hold a record $13.2 trillion in accessible home equity, but 88 percent of it belongs to owners whose current mortgage rate is below today’s market. The good news is that the locked-in share dipped 2 percent from a year ago, a sign the lock-in effect is slowly shifting. If you have a low rate you love, a HELOC or home equity loan may let you fund a renovation or pay off high-interest debt without giving it up. If your rate is closer to today’s, a cash-out refinance may be worth a look.
My Best Tip
Nobody can time the bond market, so let’s build a plan around your numbers instead. Whether you are buying or thinking about tapping equity, a quick review can show you where you stand.
I invite you to call or text me at 818.307.6072 or simply reply to this email. Referral partners, I’m always happy to run numbers for your clients.
