Mortgage Rates Dip & Refinance Surprises - Your Weekly Market Update
Hope you're having a great week! Here’s your update on what's happening in the markets because it's certainly been an interesting time.
Good news first: we've seen mortgage rates continue their downward trend, hitting their lowest levels in four months! As of February 27th, Freddie Mac’s weekly survey reported the 30-year fixed-rate mortgage trended lower by .11 percent from the previous week. This is largely thanks to Treasury Secretary Bessent's efforts to lower the 10-year Treasury yield, which directly impacts our mortgage rates. We've seen that yield drop significantly, and that's translating to better rates for you.
What's also exciting is that despite a slightly higher-than-expected inflation report, the market is looking forward. The recent dip in oil prices is a promising sign for future inflation numbers, and that's keeping rates in check. Plus, the uncertainty in the global market is driving investors towards safer assets like U.S. bonds, which is also helping to keep rates down.
Now, for a bit of a surprise: even with elevated interest rates, refinancing activity has climbed for the third straight quarter. It seems many homeowners are taking advantage of any dip to lock in better terms before rates potentially climb again. While overall lending activity dipped slightly, refinancing is bucking the trend.
Could now be a good time for you to refinance and access the equity you’ve built up in your home? Reach out to me, and let’s discuss your options! You’re always welcome to reply to this email or call/text me at 818.307.6072 to set up a time to talk.
On the flip side, purchase mortgages saw a bit of a seasonal slowdown as we’re on the cusp of the Spring Homebuying season. This is pretty typical for this time of year, but we're still seeing a healthy year-over-year increase in overall lending. Also, FHA and VA loans are gaining market share, which is great for those who qualify.
Looking ahead, we're keeping a close eye on the upcoming jobs report this Friday, the most important report we see all month. It's a big one that could cause some market volatility. Current predictions are for a moderate 160,000 rise in new job creation and no change in unemployment. Presumably, March will be when the employment picture reflects federal government layoffs and related effects.
As for private sector job creation, ADP is predicted to report new jobs up 162,000 on the month, not too shabby.
Remember, the market is dynamic, and while we're enjoying these lower rates, it's always good to be prepared.
If you're thinking about buying, refinancing, or just want to chat about your options, please don't hesitate to reach out. I'm here to help you navigate this market and find the best solution for your needs.