When will mortgage interest rates fall?

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As the real estate market continues to grow at unprecedented levels, many aspiring homeowners have been left behind and frustrated. And rightly so – to get into the house at this moment means to seize interest rates at their all-time low and they are a moving target. New economic indicators move the arrow up and down. Latest job report sent mortgage interest rates slightly up, but when will they fall again?

What are the current mortgage interest rates?

The release of the July 6, 2021 employment report from the US Bureau of Labor Statistics showed that employment rose by 943,000 jobs in July 2021. As is often the case when the economy is showing signs of recovery, interest rates have risen. Little.

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Mortgage rates have come under pressure from another source. Statements by members of the Federal Reserve indicate that they want the central bank to end quantitative easing, a policy that ensures the free flow of money and keeps rates artificially low. The policy has been in effect since March 2020 due to the coronavirus pandemic.

buying a house

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Thanks to quantitative easing, the Fed is buying billions of dollars in government debt every month, including mortgage-backed securities. As a result, money becomes cheaper, which means lower interest rates on many types of loans, including mortgages. Fed Chairman Jerome Powell was in no hurry to end the quantitative easing program before the end of the year. But some notable voices at the Fed were waiting for this to end sooner rather than later.

Last week, the 30-year mortgage interest rate rose ten basis points from the previous week to 2.91 percent. The interest rate on a 15-year mortgage rose one basis point to 2.2 percent.

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