Mortgage rate declines are anchored to an expected Fed cut

"Buyer activity has picked up compared to this time last year, and refinancing is on the rise, now making up nearly 47% of all mortgage applications, the highest share we've seen since last October. For homebuyers who've been sitting on the sidelines, these drops in rates are expanding affordability and giving them new confidence. And for homeowners, the window to refinance and save is opening wider."

"The Fed's dual mandate to promote maximum employment and stable prices is facing turbulence. Businesses are creating new jobs at a much slower pace. Annualized inflation remains above the Fed's 2% target and has moved slightly higher in the wake of international tariffs imposed by President Donald Trump. John Williams, the president of the Federal Reserve Bank of New York and a voting member of the Federal Open Market Committee (FOMC), said in public remarks last week that economic output is also tepid."

Lowest mortgage rates in nearly a year signal a potential turning point for buyers and homeowners. Rates have followed a pattern since an underwhelming July jobs report, and a weaker August print pushed the likelihood of a Fed rate cut next week close to 100%. Lower mortgage rates are increasing buyer activity and driving refinancing to nearly 47% of mortgage applications, the highest share since last October. Rate drops are expanding affordability for sidelined homebuyers and widening the window for homeowners to refinance and save. Job creation has slowed, inflation remains above the Fed's 2% target and has edged higher after international tariffs, and GDP growth slowed to about 1.5%, supporting a possible move toward more neutral interest rates if progress continues.

Read at www.housingwire.com