Weekly Mortgage Rate Update- 8-29-23

We start today out with an improvement in mortgage rates after weaker economic news reports hit.

This morning JOLTS (Job Openings and Labor Turnover) showed a reduction in job openings.  While still a very strong reading, the market was expecting openings at 9.465 Million and came in at 8.827 million unfilled jobs- this is a big miss. 

Powell pays close attention to this report as a leading indicator on the employment outlook.   

Adding further support to rate improvements this morning, a weaker consumer confidence report shows the August reading was weaker than expected at 106.1 versus estimates of 116.5.

Powell Spoke on Friday and stuck to the script, he will raise rates as needed and hold for longer than markets may be expecting without wavering on the inflation target.  He still wants to see a pattern of weaker economic news and won’t make a decision based on one reading.  

We are due for some relief after weeks of mortgage rates rising to the highest levels in 22 years. This week could be our chance to see better mortgage rates depending on the rest of the data. There are a lot of reports still scheduled for the remainder of the week on inflation and employment that could move the needle either way.

We need more weak economic reports to get better pricing, we will see if the current improvements hold depending on the data.  

* Specific loan program availability and requirements may vary. Please get in touch with your mortgage advisor for more information.