AI-Summary – News For Tomorrow
Mortgage rates are predicted to hold steady through mid-September, after which their direction hinges on the Federal Reserve’s upcoming meeting. The Fed faces the challenge of high inflation coupled with slowing job growth, presenting them with three possible responses. Investors anticipate a rate cut in September, though this isn’t guaranteed. August saw a decrease in the 30-year mortgage rate, contrary to some predictions of stability. The ultimate trajectory of mortgage rates depends on the Fed’s decision regarding inflation and employment concerns.
News summary provided by Gemini AI.
Mortgage rates are likely to remain mostly unchanged in the first half of September. After that, the direction of mortgage rates depends on what the Federal Reserve does at its two-day meeting ending Sept. 17.
It’s not great for buyers and refinancers
What’s driving rates
Whether you want to buy a house or refinance your mortgage, you wonder why rates aren’t cooperating with your wants and needs. One way to understand is to view the economy as the Federal Reserve does.
Lately the Federal Reserve has been caught in an uncommon bind: Inflation is higher than the Fed wants, while job growth is slowing. Usually the central bank faces one of those problems at a time instead of both.
The central bank has three options for a response.
Investors seem fairly sure that the Fed will choose the first option and cut rates at its September meeting. It’s not a slam-dunk certainty, though.
What other forecasters predict
What I predicted for August and what happened
They didn’t stay about the same. They went down decisively, with the average on the 30-year mortgage dropping from 6.84% in July to 6.66% in August. So I was sorta right.
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Holden Lewis writes for NerdWallet. Email: hlewis@nerdwallet.com.
The article September Mortgage Outlook: Rates May Stay Put Until the Fed Meets originally appeared on NerdWallet.
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