September – Still a great time for mortgage rates!
It seems like mortgage rates will stay in their current low range throughout September, at least until the end of the month.
Concerns around the Delta variant are still keeping rates low. And recent reports show our economic recovery slowing down.
The August jobs report — released September 3 — showed only 235,000 new jobs created in August. That was far below the forecast of 750,000 new jobs.
“The rising number of Covid-19 cases tied to the Delta variant could result in slower job growth for two reasons,” reported Wall Street Journal.
“Businesses, particularly in services sectors requiring in-person contact, could hold off on hiring amid heightened pandemic uncertainty. Jobless individuals who are fearful of Covid-19 health risks might also be slower to return to the labor market until the virus abates.”
Remember that the weaker the economy is, the longer interest rates will stay low.
Experts aren’t expecting mortgage rates to rise substantially until the Fed makes a firm announcement about when it will start tapering its bond-buying program. And, as Fed Chair Powell has said, they won’t make that announcement until they see further progress toward maximum employment. This report throws a wrench in that progress.
Further, Sam Khater, Freddie Mac’s chief economist stated, “Mortgage rates dropped early this summer and have stayed steady despite increases in inflation caused by supply and demand imbalances. The net result for housing is that these low and stable rates allow consumers more time to find the homes they are looking to purchase.”
For now, low mortgage rates are sticking around. And home buyers and homeowners can still save big on their housing costs.
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