WEEKLY MARKET UPDATE August 31, 2024

Last Friday, Fed Chairman Jerome Powell spoke at Jackson Hole and announced, "It's time to start cutting rates." This marked a crucial shift in economic policy, with an immediate impact on mortgage rates. Over the past four months, rates have dropped by more than 1%, bringing relief to homeowners and potential buyers. As affordability improved, millions of loans became eligible for refinancing, offering a chance to lower monthly payments.

Powell also addressed the Fed's dual mandate of keeping inflation low and achieving full employment. The Fed is concerned about the job market, with unemployment rising to 4.3% in July. Starting September 18, the rate cuts aim to strengthen the economy and support employment.

In housing news, the Case-Shiller national home price index showed a slight slowdown, with a 0.2% increase in June, but prices were still up 2% for the year. Some cities like Charlotte, Dallas, Phoenix, and Portland saw price declines in June.

As Powell's message resonated across the financial world, the focus is on steadying the economy.

I wish you a fantastic Labor Day weekend full of relaxation and joy. Whether traveling, spending time with loved ones, or enjoying downtime at home, I hope it's a refreshing break. Stay safe, take care, and thank you for being a valued part of our community. Until next time, enjoy your weekend!