Mortgage Rates & What This Means for Our Market

Hi Everyone,

I want to share some important news with you about the direction of mortgage rates and what it could mean for our market here in Orange County.

At last week’s Jackson Hole Economic Symposium, Fed Chair Jerome Powell hinted that the Fed may soon adjust its policy stance. The markets immediately took this as a sign that a rate cut is on the horizon, and mortgage rates moved lower.

Here’s what to watch:

• On September 5th, the new jobs report will be released. If job growth slows or unemployment ticks up, it’s almost certain the Fed will cut rates on September 17th.

• If the labor market looks stronger than expected, the Fed may hold off, and rates could bounce back up.

Where rates stand right now:

• Conventional loans: high 5% range to 6.5% for a 30 year fixed

• FHA & VA: 6% range

• Jumbo: mid 6% range

If a rate cut happens, momentum should push mortgage rates even lower.

Now, here’s my perspective: as rates come down, I fully expect the Orange County real estate market to heat back up. It may take until spring for this to really kick in, but it will happen.

For those who bought a home in the past few years, now is the time to start planning. If refinancing is on the horizon, getting applications started early could save a lot of stress when lenders get slammed with volume. Timing it right could also put you in position to lock in at the lowest point.

I’ll be keeping a close eye on the numbers and will continue sharing updates. In the meantime, if you have any questions about rates, refinancing, or how this could impact buying or selling in today’s market, don’t hesitate to reach out. I’m always here to help.

Best,

Chris

714.206.1479