TODAY’S INTEREST RATES
Mortgage rates hit 3 week highs on Friday after a strong July Jobs Report saw 943,000 jobs created and
the unemployment rate drop from 5.9% to 5.4%.
The trend of MBS trading down and rates going up continued on Monday and Tuesday but we did see some improvement while
writing this update on Wednesday. See the green pull back below.
As we continue to reiterate, the FED is watching the economic numbers and will taper once they see enough improvement.
The Dallas FED Chairman spoke today and said that the FED should taper in October.
Tapering of bond purchases will push mortgage rates higher.
Below is a great chart showing job numbers.
We are starting to get close to pre-COVID numbers.
Below are Today’s Interest Rates for well qualified clients.
FORBEARANCE EXITS LIKELY TO ADD TO HOUSING INVENTORY
The Federal Foreclosure Moratorium expired on July 31st and experts predict that many behind homeowners will put their home on the market
Per a recent survey, 25% of borrowers exiting forbearance don’t have a plan to get mortgage into good standing.
Over 850,000 borrowers will exit forbearance in the next 3 months and they are estimated to increase the housing inventory by 15%
compared to June of 2021. This is welcome news for homebuyers!
