Rates are waiting for multiple balls to drop before they make any significant movement. For the moment, they are holding steady with the 30-year fixed rate mortgage at 2.93% and the 15-year mortgage at 2.38%.
Investors have their eyes on multiple moving targets, including the number of Delta variant cases and its effects on the economy. Fortunately, experts believe that consumers (and therefore the economy) will be better prepared to deal with this variant having gone through multiple waves of the pandemic already. However, concerns remain as consumer spending slowed in July, with only a 0.5% increase compared to the 1.0% increase in June. What may help matters is the FDA’s recent approval of the Pfizer vaccine, which may prompt more businesses to mandate employee vaccination and slow the spread of coronavirus. For now, though, it’s too soon to tell. Last but not least, Powell’s remarks at the virtual Jackson Hole Symposium, which will be attended by central banks around the world, will be closely watched for any signs of flexibility on tapering.