Are Lower Mortgage Rates Finally Coming?

Monday Morning Mortgage Update:

We got some encouraging economic news last week.

Inflation continued to cool in July, with both consumer and producer inflation coming in better than expected. At the same time, retail sales declined, and the latest jobs report showed some weakness in the labor market.

Why does that matter for mortgage rates?

Generally, mortgage rates like to see two things: lower inflation and a slowing economy. We're finally starting to see signs of both.

That doesn't mean mortgage rates are suddenly going to drop. Energy prices remain elevated, and there are still plenty of things that can move the market in either direction.

But the overall picture is more encouraging than it was a month ago.

For buyers, my advice hasn't really changed: don't try to perfectly time the market. If you find the right home and the payment works for you today, move forward based on today's numbers. If rates improve later, refinancing may become an option.

The good news is that we're finally starting to see some of the economic data move in the direction we've been waiting for.