08/06/2024
🚨Let’s talk about Mortgage Interest Rates🚨
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We are living through a huge stock market sell off right now. What’s going on? The jobs report came out last week that the US barely added jobs in July and unemployment was up. As of last week, the FED is keeping rates the same so people are panicking saying, “the economy is slowing down, shouldn’t you be cutting rates”? Everyone started to panic because headlines make you want to sell and started selling their stock. 401k’s are tanking, the market lost trillions in value, and we have other things happening globally to add impact.
All we are looking for is a weaker economy so if we get things that support a weaker economy, people sell their stocks and move it over to something that is more stable, like bonds. Stocks and bonds tend to have an inverse relationship in terms of price. So when people buy bonds, the price goes up. When bond prices go up, yields goes down. Our rates are tied to that yield. When yields go down, so do our rates! 📉
The FED came out last week and the attitude was very receptive to the FED cutting rates. It’s the tone we have been waiting for. Nothing is a guarantee but it would seem we are on the brink of a fed cut in September and possibly more throughout the rest of the year. The fed funds rates does not directly control mortgage interest rates. It definitely impacts it because it moves other things in the market that now impact mortgage rates. Since the the fed fund rate does not directly control mortgage interest rates, waiting for September may not aid you in getting a better mortgage interest rate than today.
Wanna know more about where rates are and what that impact can actually mean for you? Should you buy? Should you sell? Should you refinance? Should you wait?
Reach out and I’m happy to have a conversation about your personal situation so we can determine what’s best for you!
A full video on this is linked in the comments below. ⬇️
