How did the markets end last week?
Mortgages stayed on their best behavior at the end of last week as they reacted to employment data. Non-farm payrolls increased by 315,000 workers last month and the unemployment rate unexpectedly rose to 3.7%. The change in non-farm payrolls met expectations, but the rise in unemployment was a surprise. Markets appeared to be staying ‘risk averse’ with most major indices inching lower, and no one looking to make major moves ahead of the holiday weekend. The weaker jobs numbers add to rising concerns from investors regarding the broader economic conditions as the Federal Reserve continues to ramp up interest rates to attempt to lower inflation.What’s up for this week?
The only major announcement scheduled right after Labor Day is the Beige Book release on September 6. The Beige Book is a summary of commentary on current economic conditions and is released eight times a year by the United States Federal Reserve Board. While it doesn’t directly reference mortgage rates, the Beige Book can influence overall economic policy, and that has the potential to impact the mortgage market.Buying or Renting?
The Wall Street Journal recently published a detailed article on a key decision that people have to make: “Is it better to buy or rent?” Rising mortgage rates have further complicated the question. In the second quarter of 2022, the median mortgage payment was almost one-and-a-half times higher than the median rent payment. That’s the largest difference in records going back to 2009. As long as it makes sound financial sense for your budget and situation, getting a mortgage enables you to build equity instead of a paying your landlord. Mortgage rates are impossible to predict, but if you decide that purchasing a home is the right move for your situation, locking in your rate is more important now than ever. Locking in your rate allows you to shop with the confidence that your mortgage payment won’t be subject to a sudden increase in rates.
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in under 10 minutes. Grab a few important documents to get started.
- Tax Returns
- Copies of W-2s (or 1099s for independent contractors,
freelancers and the self-employed) - A payroll stub
- A bank statement
- Loan obligation info (student loans,
auto loans and credit cards)
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