Busy Week In Mortgage Rate World

📊 Mortgage Market Update — This Week

What Happened

• Mortgage costs moved lower this week, reaching their lowest levels in nearly a year.

• The drop followed a much weaker-than-expected jobs report, which showed slower hiring and a slight uptick in unemployment.

• This signaled that the labor market is cooling, leading investors to shift money into bonds, which in turn pushed mortgage costs down.

Why It Matters

• With the economy showing signs of slowing, the Federal Reserve is now expected to cut interest rates at its upcoming meeting.

• Some market watchers think the Fed could make a larger-than-expected move, but most anticipate a smaller cut.

• The Consumer Price Index (CPI) report, due out this week, will be a key factor in shaping the Fed’s decision.

What’s Next

• CPI Report (Thursday): If inflation comes in lower, it strengthens the case for a Fed cut and continued relief in borrowing costs. If inflation is hotter than expected, the drop in mortgage costs could stall.

• Federal Reserve Meeting (Sept. 17): A rate cut is widely expected, but the size of the move depends on the new inflation data.

What This Means for You

• Homeowners considering a refinance may find new opportunities to lower monthly payments.

• Buyers who have been on the sidelines could see affordability improve, though inventory remains the other big factor.

• Markets will be watching inflation closely — if it cools, borrowing costs may trend even lower heading into fall.