Also known as a discount point, this is money paid to the lender at closing in exchange for a lower interest rate. Sellers can pay for some of the buyer’s closing costs, such as mortgage points. If you can’t haggle down the price of a home, you might have better luck negotiating closing costs. “Most homes that are still on the market are likely to see further price cuts.” Negotiate closing costs “So for buyers who are still in the market and ready to buy, I see a much better landscape in September and October,” Ratiu says. Nearly 1 in 5 homes listed on saw price cuts in July, Ratiu says, which indicates inventory is increasing and homes are spending more time on the market. With less competition in the coming months, you have a better chance at winning a bid-and potentially at a lower price. The homebuying season tends to slow in the fall and winter, potentially setting the stage for bargains when you look for homes. Here’s what the experts have to say about getting a mortgage with affordable terms right now. Experts’ Advice for HomebuyersĮven with mortgage rates and home prices on the rise, it can still be a good time to buy a home. That push-and-pull effect will likely stabilize mortgage rates in September. “As we head into a traditionally slightly slower season, the fall, I do expect the Fed’s monetary tightening to exert a downward pressure on mortgage rates,” Ratiu says. On the other hand, Ratiu says, the Federal Reserve is still committed to lowering inflation, which was at 8.5% in July-down from 9.1% the month before.
That would keep upward pressure on mortgage rates.” So by most recent measures, our economy, despite concerns of a recession, remains resilient. The weekly jobless claims data has been steady at pre-pandemic levels. The employment market is still solid, with unemployment at 3.5%. “There have been mixed signals,” says George Ratiu, senior economist and manager of economic research for. But the National Bureau of Economic Research, a private nonprofit agency, also considers other factors before it declares whether the U.S. Gross Domestic Product has contracted for two quarters in a row, which is a classic marker of recession. What Is Affecting Mortgage Rates Right Now?Įxperts predict fairly stable mortgage rates in September as we wait to see which direction the economy will take. Experts Predict: What Will Happen With Mortgage Rates In September? Here’s what housing experts have to say about September’s 30-year fixed mortgage rate trends and what you can do. The Federal Reserve’s approach to lowering inflation – by raising its benchmark short-term interest rate – could put some downward pressure on rates. But borrowers are still grappling with stubbornly high inflation, which dropped from 9.1% in June to a slightly less miserable 8.5% in July, according to the Consumer Price Index. The labor market and consumer spending remain bright spots in an otherwise gloomy economic landscape, which is nudging mortgage rates upward. Rates have bounced around in the 5% range since April, and may stay around there for the next month “as the markets deal with the ‘push me, pull you’ of inflation and economic strength,” says Melissa Cohn, regional vice president of William Raveis Mortgage.
While mortgage rates closed August with the average 30-year fixed rate on the verge of hitting 6%, they aren’t expected to stay there. For more information, see How We Make Money. Some links on this page - clearly marked - may take you to a partner website and may result in us earning a referral commission. We want to help you make more informed decisions.
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