Mortgage Rates Holding Steady… For Now

After Fed Chair Jerome Powell’s Jackson Hole speech last Friday, mortgage rates dipped to their lowest point since October 2024. Many headlines made it sound like a major shift—but the truth is more subtle, and a lot more important if you’re buying or refinancing a home.

Here’s what’s actually going on:

1. Friday’s “Rally” Was Real—But Also Just a Reset
Powell hinted at the possibility of a rate cut in September, acknowledging weakness in the labor market and downplaying long-term inflation threats from tariffs. That spurred a strong bond market rally, which in turn helped push the average 30-year fixed mortgage rate down to the lowest level of 2025.

However, it’s important to note: this move didn’t break us out of the trading range we’ve been in since the rocky August 1st jobs report. In other words, rates moved lower—but not into totally new territory. We’re still waiting on key data to tip the scales.

2. Monday and Tuesday: Quiet but Telling
After that Friday dip, rates nudged slightly higher on Monday, then returned back to Friday’s levels on Tuesday. That small up-and-down movement is typical when markets pause to wait for new data. Even a surprising bump in New Home Sales wasn’t enough to move the needle much.

3. Today’s Big Drama? A Quiet Response
This morning, bonds barely moved—even after news broke that President Trump is attempting to fire Fed Governor Lisa Cook. While markets took notice (especially shorter-term bonds), the mortgage rate impact was minimal.

That’s because mortgage rates are more influenced by broader expectations of where Fed policy is headed—not every twist in DC drama.

4. What Happens Next? All Eyes on Friday and Next Week
The next major event is Friday’s PCE inflation report, one of the Fed’s preferred inflation gauges. It may not usually shake the market—but right now, it could add confirmation that a rate cut is coming.

After that, next week’s jobs report becomes the biggest driver. A weak number could push rates even lower. A surprise to the upside could reverse the recent dip.

Bottom Line:
Mortgage rates are near their lowest levels in nearly a year—but don’t let that lull you into inaction. This calm may not last long. Rates could shift quickly based on Friday’s inflation data or next week’s jobs report.

If you’ve been waiting for a good time to make a move, now’s the time to review your options—before the market decides for you.

Have questions or want to talk through your options? Just fill out the contact form on this page or give me a call—I’m here to help.

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Source: Mortgage News Daily