22/08/2025
A very positive update on rates! I get weekly updates from a few great lenders and it seems September may be the month to see some positive momentum!! 🎉 Reach out if you’re thinking about buying or selling as this market is about to have some big movement!! Now is a great time to start that approval processes and get ahead of the chaos! 🏡
Happy Friday! We’ve been anxiously waiting to see what would happen after Fed Chair Jerome Powell’s speech at Jackson Hole this morning! (This one mattered because it would give us a good look at what the Fed is thinking heading into their September 17 meeting)
He made it pretty clear he’s ready to cut rates at the September 17 meeting! Job growth has slowed more than expected, growth overall is cooling, and Powell said the risks ahead may call for adjusting policy. Markets now see a 90 percent chance of a 25-point cut, which has already helped mortgage rates drift a little lower this morning. The only wild card is the data we’ll get before the meeting. The inflation reports (PCE at the end of this month and CPI in early September) are important, but as long as they’re not way higher than expected, the Fed probably won’t shift gears.
Powell also downplayed the long-term impact of tariffs on inflation, saying the effects should be more of a one-time adjustment rather than something that lingers. This reassurance also helped bonds rally right after his comments (helping rates).
Housing is still moving but showing some strain. July existing home sales were up slightly from last year, prices held near record highs, and inventory improved a bit but is still tight. New construction rose overall, though most of the gains were in apartments, while builders of single-family homes are leaning on price cuts and incentives.
Bottom line: The Fed looks poised to cut rates in September unless something really unusual happens in the next couple of weeks. That’s already giving mortgage rates a bit of breathing room!