Mortgage rates are now sitting at their lowest point in the past 12 months—a welcome shift for both homeowners and buyers! This move comes as labor market data continues to soften, reinforcing expectations that the Federal Reserve will cut rates later this month.

But here’s the important part: the bond market is already pricing that in, which means today’s lower rates reflect the anticipated Fed cut.

⚠️ In other words: don’t wait for the Fed to act before you explore your options.

Just a quick reminder: These articles I share here are researched and written by me! As part of my commitment to ongoing support for my clients and partners, I write these articles to help them understand what’s really happening in the markets, beyond the headlines and soundbites.

Bought in the past 3 years? Now may be your chance to reduce your rate!

For homeowners who purchased in the past three years, this is a tremendous refinancing opportunity. Many locked into rates higher than what’s available now.

On top of that, property values have climbed steadily, which creates an additional benefit: if you bought with less than 20% down, refinancing may also allow you to eliminate private mortgage insurance (PMI), lowering your monthly payment even further.

For potential homebuyers, a double-edged sword

For those considering buying a home, lower rates mean lower payments, plain and simple. However, there’s a trade-off: as we saw during the COVID years, when rates fall, more buyers rush into the market. That added demand often drives up prices. Lower rates can reduce your payment, but more competition can push the price of the home itself higher—a true double-edged sword.

What could send rates back higher

Mortgage rates have enjoyed a steady downward trend recently, fueled by a series of reports showing the labor market softening.

However, if labor data suddenly shows unexpected improvement, rates could climb higher. That risk is amplified by the fact that President Trump recently replaced the head of the Bureau of Labor Statistics (BLS)—the agency responsible for monthly jobs data—after August’s report showed far fewer jobs created than anticipated.

BBC: Trump picks conservative economist to lead jobs data agency

If the new BLS leadership is perceived as politically motivated, markets may discount any “improving” labor data as unreliable. In that case, bond investors could react negatively, pushing yields (and mortgage rates) upward despite seemingly better economic news.

Long story short

The takeaway? Whether you’re buying or refinancing, now is the time to run the numbers. Today’s lower rates open the door to opportunities we haven’t seen in over a year – Don’t miss the window!

If you find this interesting or helpful, please feel free to share it with a friend, family member, or co-worker – it’s my goal to educate and empower as many people as possible during this incredibly unique time in housing!

Here is how I can help!

– If you are looking to purchase a new home or have questions about your mortgage, the market, getting preapproved, etc., or

– If you are a Realtor Broker, or Financial Services Professional looking for a lender with great financing solutions to help educate your clients on the state of the market to help them feel good about their decisions,

Please call today – I am happy to help however I can!

I am a twenty-year veteran of the mortgage and real estate industry. My experience across nearly all aspects of real estate makes me an incredibly well-rounded problem-solver. My clients are treated to a white-glove client experience every single time. Education, information, and communication are the cornerstones of my approach.

☎ 248.956.0445 📧 brian@goforwardmortgage.com

🌐 www.goforwardmortgage.com

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