Is the moment upon us—the moment millions of homeowners who have purchased since 2022 have been waiting for: an opportunity to refinance their mortgage to a lower rate and payment?
We’ve been writing in this newsletter for months now that the Federal Reserve Bank (FED) has a keen eye on the labor market: The FED has made clear that it wants to see the labor market weaken before it begins to cut rates.
Just a quick reminder: These articles I share here are researched and written by me! As part of my commitment to ongoing support for my clients and partners, I write these articles to help them understand what’s really happening in the markets, beyond the headlines and soundbites.
Well, last week, the first domino on the way to lower mortgage rates may have fallen. In June, the Bureau of Labor Statistics (BLS) reported that the economy added 147,000 jobs in May, and in July, BLS reported that 144,000 jobs were added in June. This news was not well received by the bond market – who have known that a weakening labor market is key to FED rate cuts – and as a result, mortgage rates have failed to decline.
On August 1, the BLS reported revisions to its two previous reports, and in total, reducing the number of jobs created by 258,000 (!). Predictably, the bond market rallied, and mortgage rates enjoyed a strong descent from the high 6s to the low-to-mid 6s. As of this writing on August 4, the downward trend in mortgage rates continues.
Short story: FED refuses to cut rates until labor market softens; Reports show a strong labor market; Sudden downward revision to reports shows labor market not as strong as thought; Mortgage rates fall as a result!
For homeowners who purchased their home in or after 2022, a tremendous refinance opportunity is here! This is an opportunity to save money every month and over the duration of your mortgage by lowering your interest rate!
We have different programs and terms available as well – so if you’re 4 years into a 30-year mortgage and don’t want to “start over” on a new 30-year mortgage, you don’t have to! For example, we could make the new mortgage a 26-year term, so your home will be paid off right on schedule!
If you find this interesting or helpful, please feel free to share it with a friend, family member, or co-worker – it’s my goal to educate and empower as many people as possible during this incredibly unique time in housing!
To get started or find out if refinancing is right for you, click here to set up a refinance analysis with Brian!
Here is how I can help!
- If you are looking to purchase a new home or have questions about your mortgage, the market, getting preapproved, etc., or
- If you are a Realtor Broker, or Financial Services Professional looking for a lender with great financing solutions to help educate your clients on the state of the market to help them feel good about their decisions,
Please call today – I am happy to help however I can!
I am a twenty-year veteran of the mortgage and real estate industry. My experience across nearly all aspects of real estate makes me an incredibly well-rounded problem-solver. My clients are treated to a white-glove client experience every single time. Education, information, and communication are the cornerstones of my approach.
📞 248.956.0445 | 📧 brian@goforwardmortgage.com
🌐 www.goforwardmortgage.com
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