For yet another week, rates remain flat between support and resistance. As you can tell from the week to week rate comparisons, this summer has been almost completely flat, but has also been volatile from day to day. We haven’t changed our stance that we recommend locking in the near term and floating longer, but that could change quickly. As always, make sure you are working with a mortgage lender who knows the mortgage markets. Otherwise you could lock your rate high based solely on volatility.
The Federal Reserve reiterated last week that they will likely raise rates at a gradual pace as long as the economy remains strong. We believe it is almost certain that they will raise the Fed Funds Rate by .25% at their next meeting toward the end of September. Although the Fed doesn’t directly manage mortgage rates, the decisions they make affect the whole of the economy, including mortgage rates.
Home prices have also been more stable and this sellers’ market may be softening. Potential buyers may want to revisit purchasing this fall in anticipation of sellers receiving fewer offers. This combined with relatively flat, yet somewhat volatile rates could be the opportunity buyers have been waiting for. We are anticipating a busier fall and will continue to keep you posted.