Rates are back to the lows from the beginning of August. The 30-year fixed rate mortgage fell 2 basis points to 2.91% while the 15-year mortgage fell 1 basis point to 2.37%.
Chairman Powell revealed that he had been considering tapering asset purchases this year, but wanted to avoid making an “ill-timed policy move” given the recent uptick in COVID cases. This caused both rates and bonds to improve as investors rejoiced in this show of flexibility. However, rates are still bound to increase if the economy shows significant signs of improvements, such as in the job report on Friday. Housing-wise, home prices are still rising but competition has definitely waned in most regions. In July, NAR’s Pending Home Sales Index (PHSI) fell by 1.8%, making this the fifth time in seven months that it’s decreased. Despite this drop in competition, buyers are still pushing for quicker turnarounds with 27% forgoing the appraisal and inspection process.