Mortgage rates dipped for the second straight day on Wednesday, with lenders offering nearly identical terms to those seen on August 5.
Today’s rates are almost indistinguishable from that August benchmark, now hovering at their lowest levels in over a year.
These slide-in rates come as economic reports have largely aligned with expectations of the Federal Reserve cutting interest rates by at least 0.25% at its upcoming meeting.
The bond market, which directly influences mortgage rates, is already factoring in the Fed’s likely move.
In essence, by the time the Fed officially acts, much of the mortgage rate adjustment will have already been priced in.
As markets eagerly await a clear signal, the next two days could prove pivotal. Jobless claims and the ISM Services index, both due on Thursday, will set the stage.
But all eyes are on Friday’s jobs report, which could be the tipping point.
A weaker jobs report could fuel hopes for a larger 0.50% cut, pushing mortgage rates even lower.
On the flip side, a stronger-than-expected report would likely cement the case for a 0.25% cut, possibly nudging mortgage rates higher.
One thing’s for sure: the market’s next move might be bigger than we’ve seen in recent days, but which way it’ll go is anyone’s guess.
With businesses also keeping a close eye on these developments, the economic ripple effects will be far-reaching.
You May Also Like:
