Mortgage Watch

Mortgage Rates(as of 8/22/25) are heading lower morning, after Federal Reserve Chair Jerome Powell's speech at the Jackson Hole Symposium has sparked renewed hope among borrowers and mortgage professionals alike. Here's what happened—and what it means for mortgage interest rates and the housing market.

Key Highlights from Powell’s Speech

Speaking at the Jackson Hole economic symposium, Fed Chair Powell noted that the labor market is showing signs of cooling. Though he didn’t commit to immediate action, he emphasized that the balance of economic risks may warrant a policy adjustment, hinting at possible interest rate cuts as early as September
Powell also downplayed concerns that tariff-driven inflation would be permanent, signaling that such pressures may ease as labor dynamics shift
Markets responded swiftly: bond yields fell, the dollar weakened, and major equity indices rallied. Most notably, the odds of a September rate cut surged to around 90%.

What This Means for Mortgage and Bond Markets

Powell’s remarks mirrored much of what we anticipated:

Bonds rallied strongly, especially on the short end of the yield curve—reflecting growing expectations for easing Fed policy.
MBS (Mortgage-Backed Securities) prices bounced back to near their highest levels of 2025.
The 10-year Treasury yield settled in the middle of its trading range for the month, signaling a stabilizing trend.

How Home Buyers and Homeowners Might Benefit

Lower Mortgage Rates Ahead
As MBS prices rise and Treasury yields fall, mortgage rates typically follow. That means borrowers could soon see rates move lower—boosting affordability.
September Rate Cut Is in View
With markets pricing in a nearly 90% chance of a Fed rate reduction next month, mortgage rates could continue to drift downward in the weeks ahead.
Opportunity for Refinancing or Home Purchase
If you’ve been postponing a refinance or home purchase, this may be a smart time to explore your options before rates shift again.

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SOURCE & AUTHOR | Keith Murphy Branch Manager – Essex Mortgage NMLS #330827 Direct: 714-309-1140 Apply: www.GoTeamMurphy.com

About the Author

Tim Morissette, REALTOR®

Tim Morissette, also known in the community as Mr. Foothill Ranch, offers over 48 years of real estate experience which has given him an established reputation and unmatched market knowledge. He is joined by his wife, Michele and sons Matt and Jeff, as they continue to offer personal service with an emphasis on achieving his clients’ real estate goals. This unique combination of traits has led to his proven track record of referral and repeat business. This can be witnessed by the trust of homeowners in Foothill Ranch where he has sold twice as many homes and represented three times more buyers than the next-leading real estate agent for the last 29 years.

As residents of Foothill Ranch since 1994, Tim and Michele are actively involved in the community by fundraising for Foothill Ranch Library, Make-a-Wish Foundation, Cancer Society, Homes for Habitat, Relay for Life, South County Outreach, and the local church and schools. Tim enjoys sponsoring community-wide garage sales, paper shredding and e-waste recycling event, an Easter egg hunt, & a Meet Santa Event.

Tim and Michele are dedicated to their family of four sons, daughter-in-laws, and grandchildren. As a family, they enjoy many outdoor activities which include camping, spearfishing, mountain climbing and exploring the miles of hiking and equestrian trails in Foothill Ranch and the Whiting Ranch Wilderness Park. Tim and his sons are also avid snowboarders and enjoy mountain biking and lobster diving. Family is a top priority in the Morissette household. They look forward to helping more families achieve their dreams of homeownership.