Job creation is good news for the economy, but is it good for mortgage rates? New data released on August 5 shows that the U.S. economy added 255,000 jobs in July, which was way higher than consensus forecasts of just 180,000, and immediately sending rates higher.
Does this mean your 2016 window has closed? No, there are still great opportunities for refinancing and purchasing a home at low rates. Rate markets are volatile, and throughout 2016, we have seen rates fluctuate during periods of economic uncertainty.
In January and February, rates dropped to their lowest level in three years because of persistent worries about economic instability outside the United States. Then after rising slightly until late June, rates dropped again due to worries that arose when the U.K. voted to exit the European Union.
We spoke to a lender today that said 3.29% was the current rate for a 30 year fixed mortgage! In the next few months, a presidential election and three more Federal Reserve meetings will be factors in rate markets. The Fed’s next three rate policy-setting meetings are September 21, November 2, and December 14. Some think there will be a rate hike after the next meeting (Sept.21st), while others think they will wait until the Dec 14th meeting because that one is after the election.
With these unpredictable rate dynamics going on, you can count on rate dips coming and going quickly. It is important to work closely with your loan officer to lock in your rate quickly on a moment’s notice when rates do drop in a given day or week based on economic news of the day.
Contact us for a list of our recommended lenders, or any questions about refinancing your current home/purchasing a new home.
Finn Team, Coldwell Banker West Shell
firstname.lastname@example.org or 513-560-6513