Fed sticks to pledge
If there was any doubt the Federal Reserve wasn’t going to raise interest rates, forget about it. Last year they got it wrong, calling inflation ‘transitory.’ This time around, Chairman Powell is on a mission to flatten inflation once and for all. Or at least get it down to 2%. Expect another 75-basis-point hike from the Fed coming out of their policy meeting on September 20th and 21st.
It’s important for homebuyers to lock in a rate before this meeting to guard against any potential mortgage rate spikes.
Fall Real Estate Market Preview
Summer isn’t officially over until September 22nd, but it’s already feeling like fall in many parts of the country. While homebuying typically slows down in the fall, this particular season could be an ideal time to take advantage of slightly declining home prices.
Inflation, rising mortgage rates and a recession might have you thinking, ‘no way,’ but there are a number of factors you can control to put yourself in a good position to buy when the right home comes along.
Mortgage rates tick down
The recent 30-year fixed is down to 6.12% as the market processes the Fed Beige Book, a report typically published two weeks prior to the Fed meeting. The main takeaways were U.S. economic growth prospects were weak and set to decline over the next year.
At the same time prices are beginning to moderate, with some sectors even declining. While this may sound dire, let’s take the glass-half-full perspective and recognize that the Fed rate hikes are working to help cool the economy. Still, inflation has been over 8% for five straight months so the Fed and the economy still have a way to go.
Pre-Approval
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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)
Applicant subject to credit and underwriting approval. Not all applicants will be approved for financing. Receipt of application does not represent an approval for financing or interest rate guarantee. Restrictions may apply.
All information provided in this publication is for informational and educational purposes only, and in no way is any of the content contained herein to be construed as financial, investment, or legal advice or instruction. Guaranteed Rate does not guarantee the quality, accuracy, completeness or timelines of the information in this publication. While efforts are made to verify the information provided, the information should not be assumed to be error-free. Some information in the publication may have been provided by third parties and has not necessarily been verified by Guaranteed Rate. Guaranteed Rate its affiliates and subsidiaries do not assume any liability for the information contained herein, be it direct, indirect, consequential, special, or exemplary, or other damages whatsoever and howsoever caused, arising out of or in connection with the use of this publication or in reliance on the information, including any personal or pecuniary loss, whether the action is in contract, tort (including negligence) or other tortious action.
John Kistner is Guaranteed Rate’s Market Analyst. Market Updates are designed to provide readers with a high-level yet insightful view of how economic news, events and trends affect mortgage rates and the homebuying process.