Mortgage Watch

Mortgage Rates Nosediving to Fall of 2024 Levels!

Mortgage Rates have taken a significant dip, reaching levels not seen since Fall 2024. This shift comes in the wake of a disappointing August jobs report, which has heightened expectations for Federal Reserve interest rate cuts.

Key Highlights:

30-Year Fixed Mortgage Rate: Dropped to an average of 6.125%, down from 6.45% the previous day.
30-Year FHA & VA Mortgage Rate: Dropped to 5.75%
August Jobs Report: Only 22,000 jobs were added, significantly below the forecasted 75,000.
Unemployment Rate: Increased to 4.3%, marking the highest rate in four years.

The bond market reacted swiftly to the weak employment data. Investors moved towards safer assets, causing bond prices to rise and yields to fall. This inverse relationship between bond yields and mortgage rates led to the observed decrease in mortgage rates.

With the Federal Reserve's next meeting scheduled for September 17, the market is now pricing in a 100% probability of a rate cut, with discussions of multiple cuts by year-end.

Bottom Line: For prospective homebuyers and those considering refinancing, this development presents a potential opportunity. However, it's essential to stay informed, as upcoming economic indicators could influence future rate movements.

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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.