Rates continued to de-escalate this week with the 30-year fixed rate mortgage 6 basis points lower at 7.09% and the 15-year mortgage 5 basis points lower at 6.50%.
Rates are sure to express some volatility over the next two weeks as they digest new economic data including Friday’s job report and next Thursday’s Consumer Price Index report. The Fed will also be meeting today, but the market has all but locked in on a 75 basis point increase. What remains to be seen is Powell’s language surrounding rate hike trajectory. Namely, are we anywhere close to hitting a rate ceiling? Most likely, Chairman Powell will prescribe a wait-and-see approach until they have more information and in the meantime will avoid making any promises for December’s meeting. All the while, the housing industry is feeling the effects of these unfriendly policies. According to the latest GDP data, real estate investments fell 26.4% since Q3 of last year. New home sales and pending sales are also weaker this year, down 10.9% and 10.2% respectively.