Mortgage bonds cool down.
Homebuyers were gifted an opportunity in early Aug. as we saw the national mortgage interest average for a 30-year fixed conventional loan decline to 5.05% down from 5.90% almost a month earlier. The Federal Reserve raised the federal funds rate by 75 basis points signaling a strong posture to combat inflation in the economy. In anticipation of the news mortgage bonds rallied in the markets. When mortgage bonds are being purchased we see mortgage interest rates decline. Bonds peaked in early Aug., leading to better pricing with interest rates.
As with any market, there is a cooling-off period. Bonds have been in a steady sell-off
since they reached their peak in Aug.. Our national mortgage interest rate average is now up to 5.95%
What does the future hold? It’s anybody’s guess, this cooling period might just be a
short period before we see more continued rise in mortgage bonds. We do know
the federal reserve is in talks to raise the federal fund’s rates again perhaps
giving bonds more momentum and better rates on the horizon.
Even with current mortgage rate levels, there is still a great opportunity to purchase as
a buyer. The average amount of days a listing is on the market is 30+ days,
with fewer buyers to compete against than in the years past you may very well
just get that accepted offer for the new home you have been needing to purchase
without giving up everything.
For mortgage questions please feel free to reach out to me.