Prestige Capital – Rates Tumble after Weak Jobs Report
Applications for home purchases and refinances are in high demand now, as the market reacted to a weak jobs report from the Bureau of Labor and Statistics.
The report indicated a rise in unemployment and as a result, Treasury yields moved lower as investors purchased more bonds. A high demand for bonds pushes the yields down, and mortgage rates typically move in line with Treasury yields.
Additionally, the Federal Reserve is expected to lower the benchmark rate in their next meeting, happening September 16-17. The Fed’s goal is twofold: To reach 2% inflation, with the highest employment numbers possible.
Currently, they’re looking at a rise in both inflation (up to 2.9%) and unemployment, and a rate cut is expected to try to balance the economy. A rate cut will drop interest rates on credit cards and short-term loans, but this may have an indirect effect to lower mortgage rates, as well.
Whether you’re looking to buy a home or refinance, this may be the opportunity you’ve been waiting for. Rates change daily, and my team and I are watching the market very closely.
Give me a call to get more information on current rates for purchase, refinance, home equity loans, and lock-in options! We’re here to help you plan your strategy for success!
Best regards,
Tracy Shaw
President NMLS # 913749 | CalBRE # 01894272
Direct Line: 626.758.0588
Prestige Capital Inc.
41 E Live Oak Ave, Arcadia 91006
Helping clients achieve home ownership with expert lending solutions and personalized guidance.
