It’s a volatile market after all

Treasury yields are now rising at a rate to alarm investors who promptly backed off of growth stocks (whose performances would be most in jeopardy if central banks retaliate with tighter monetary policy). The 30- and 15-year fixed rate mortgages continue to move in tandem, both increasing by 16 basis points to settle at 3.16% and 2.60% respectively.

current outlook:

Inflation continues to be a concern as is the spread of COVID-19, which brought down consumer’s short-term outlook on business, income, and labor conditions. As a result, consumer confidence dropped from 113.8​​ to 109.3 instead of the predicted increase to 115.0.  Housing prices followed a similar trend falling short of a 1.70% monthly increase as experts had anticipated. Month-over-month, prices only grew 1.55% in July compared to 1.79% in June. From a prospective buyer’s viewpoint, this is beneficial as decelerating prices plus reduced competition during the fall and winter months may be a “winning” combination for any offers they make. As far as rates go, the chances of a rate hike in 2022 is now 50-50 with more Federal officials escalating their predictions. Tapering is also likely to begin soon, which may also drive up rates.

As the quarter comes to an end, investors reassess their situation and rates begin to settle at new higher levels

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