Weekly Update Aug 15

Rate fell slightly across the board for all mortgage types.  I am beginning to sound like a broken record, but mortgage bonds continue to trade between support and resistance levels yet again.  Although the mortgage market has been largely flat with some  relatively small changes over the last several weeks, we are still generally advising clients against floating rates beyond 30 days and are watching continuously for indicators to lock sooner or float longer.

Fundamentally, the US economy continues doing well, despite tariffs and other world events.  However, this doesn’t help everyone.  Home affordability continues to drop and is now close to Great Recession levels, keeping many buyers out of the house market as they are unable to afford these high prices.  If interest rates rise, this could compound the issue.  The next Fed meeting in late September will be interesting and we well keep you posted as this event draws closer.

We have also been visiting with many clients about mortgage rates, refinancing, and the total picture.  In short, depending on the other assets, debts, interest rates, and payments, many homeowners could still benefit from a refinance even if into a higher rate.  This isn’t always easy to understand for clients, but a good mortgage advisor should be able to run a blended rate comparison to see if a refinance makes sense.  Most importantly, clients still need to understand solutions presented to them so we place great weight on education.