Mortgage rates worsen in September, what’s in store for October?
I apologize for the absence of ‘rate update’ during the month of September. I could give you a list of excuses including 40th birthday celebration, loan volume, rainy weather, washing my hair, etc.
But the bottom line is I allowed things to get in my way. Back on track in October….
The month of September was not kind to mortgage rates. After reaching multi-year lows at the end of August home loan rates increased by .125%-.375% during the month of September.
The fact that mortgage rates increased during a month when the Federal Reserve cut short-term interest rates has created some confusion amongst consumers.
Bank of Japan
For the past two decades the central bank in Japan has orchestrated “loose” monetary policy in an effort to keep interest rates low and promote economic growth. Low interest rates overseas helps keep a lid on rates rising in the US.
Yesterday, the Bank of Japan announced they would be less accommodating in the future signaling that they’d like to see long-term interest rates move higher. This is not a positive sign for US mortgage rates.
We are now 30 days from the scheduled Brexit and an agreement between Britain and the EU remains elusive. A disorderly exit may help US interest rates improve but there is still time for an agreement to be reached.
This week’s economic calendar is highlighted with the monthly jobs report due out Friday. Technical trading patterns suggest floating for now.
Current Outlook: floating bias