Hope you’re having a great week! It’s been a bit of a bumpy ride in the mortgage world lately, with interest rates continuing their upward climb. But don’t worry, I’m here to break it all down for you and share some insights on what’s happening as we head into Election Day, as of the writing of this message to you.
Economy – Staying Strong (for now):
Despite some initial recession fears, our economy seems to be holding up pretty well. Consumer spending is robust, the labor market is resilient, and we even saw positive economic growth last quarter. However, inflation remains a bit of a sticky issue, which is why the Fed is likely to keep rate cuts smaller for the time being.
As you may have heard, the new job creation number was abysmal at 12,000 compared to the 125,000 expected. However, hurricanes and strikes are blamed for the low number, and analysts pointed instead to the unemployment rate for a more accurate picture of the job market, which came in as predicted and in line with last month at 4.1 percent.
Mortgage Rates – A Bit of a Bummer:
As you may have seen, mortgage rates have been ticking up over the past few weeks, reaching their highest point since early August. The good news is that experts like Freddie Mac’s Chief Economist, Sam Khater, believe rates are likely cresting and won’t reach the highs we saw earlier this year. Phew! As you know, we’ll have to wait and see!
Election Day & Market Volatility:
Of course, with Election Day and the Fed meeting happening this week, we can expect some volatility in the market. The outcome of the election could influence the direction of rates, and the Fed’s decision on interest rates will also play a key role.
As for the Fed Meeting, the Chairman will speak to the press on Thursday afternoon. Even with a mostly resilient economic performance, the consensus view remains that the Fed sees financial conditions as tighter than necessary to keep inflation headed down toward target. And the latest jobs report underlined worries about the labor market, even if it was skewed lower by hurricanes and strikes. Forecasters see the Fed on track for another 25 basis point rate cut this week.
What Does This Mean for You?
If you’re thinking about buying a home or refinancing your mortgage, it’s definitely a time to stay informed and be prepared for potential fluctuations in rates. But don’t let the uncertainty discourage you! There are still great opportunities out there, and I’m here to help you navigate the market and find the best mortgage option to fit your needs.
As always, feel free to reach out if you have any questions or want to discuss your specific situation. You can send me an email or call/text me at 818.307.6072. And don’t forget to have a great rest of your week, whether your candidates won or not!
