Mortgage Rates Hit A 10 Month Low... Episode 220
Description
Mortgage Rates Hit A 10 Month Low...
... even though the Fed hasn't dropped interest rates in 2025
So what is causing this to happen?
I have some ideas
- pent up demand
- banks pricing in future rate cuts
- a slowdown in mortgage applications
- alien intervention
The reality may just be 3 of the 4 things above are working at the same time
Meanwhile, Fed Chairman Jerome Powell spoke at the Jackson Hole Meeting
and intimated that a rate cut may be on the horizon
leaving many people to believe that rates will be lowered
at the September 16-17 Fed Meeting
and if there is a .25% rate drop at that time
rates many not drop afterwards
as it appears that the market is already pricing that in to rates
so it may need to be a .5% rate drop to see further decreases for consumers
change is on the horizon
It is abundantly clear that there will be a new Fed Chair in early 2026
and its looking like there will 1-2 rate drops between now and the end of the year
a lot of home buyers got tired of waiting around for a small change in rates
and have moved forward on home purchases at the prevailing rates
many plan to refinance down the road
while others feel that they may only be in the home for a few years
and would rather own than rent
today's podcast talks about the dynamics in place for those watching interest rates
United States
