Blog posted On July 24, 2023
Mortgage rates trended slightly higher last week after initial jobless claims took a surprising dip Thursday morning. Lower-than-expected jobless claims = stronger labor market = not great for rates. Also in big news last week was the home inventory numbers and sales price data. Bigger news is coming up this week during the press conference with Federal Reserve Chairman, Jerome Powell, which immediately follows the interest rate announcement from the Fed.
Homeowners Can Reap BIG Profits Right Now if They Sell
Fed’s Rate Hike Likely
The rate hike is almost 100% certain, meaning the bond market and rates have already priced accordingly. The bigger, more unpredictable factor that could influence rates is what Fed Chair Jerome Powell says after the announcement. Based on what he says and the language he uses, the markets will get a better idea of where the Fed’s head is in terms of outlook, economic progress, and rates.
Future Labor Market Holds Potential for Rates
Although initial jobless claims worked against rates last week, the future job market indicators hold potential for helping rates.
So the pace of hiring is slowing, employers are trying to increase employee retention, and economists are predicting an economic slowdown later in the year.
Coming Up This Week…
Fed interest rate decision – 0.25% increase predicted
What are your thoughts? Are you still waiting for rates to fall in order to buy? Let us know.