Mortgage rates are roughly stable at 2.87%



Freddie Mac Mortgage Rate Aug 26, 2021
What happened this week:

Mortgage rates rose just 1 basis point to 2.87% as of this week. Freddie Mac, marking the third week in a series of relative stability. As the stock market hits new highs and investors continue to digest the minutes of the July Fed meeting in anticipation of Chairman Powell’s Friday speech, there were no major surprises to trigger a big move.

What does it mean:

Data for both sale of existing houses and sale of new houses Indicators in July showed that the housing market performed largely as expected, with a slight upturn during the month, but was markedly down from its peak level of activity last winter. The number of homes for sale remains low despite recent inventory improvements house prices continue to rise, albeit at a slow pace. Investors are waiting for an excuse to go in a new direction, and while we can get that from Fed Chairman Powell’s speech on Friday, the data coming in from this drop is more likely to drive rates. Rates will start to rise if we continue to make progress in tackling the pandemic, which suggests that the economy will stay on track and, although less likely, rates could drop if COVID cases continue to rise.

For home buyers, while the mortgage rate background is important, finding a home amid limited opportunities remains a bigger challenge. The constant increase in the number of homeowners deciding to sell will bring welcome relief and will likely allow more buyers to take advantage of the still low mortgage rates. While we saw less new offerings this week as students return to school across the country, we expect this decline to be temporary, which means better opportunities for homebuyers in the months ahead.

Daniel Hale Daniel Hale

Daniel Hale


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