Many analysts think so.
Many factors are leading to a low rate environment. If we don?t see lower rate in September, we?ll likely see rates about as low as in August.
Rate-suppressing factors include:
Trade wars: President Trump is proposing new tariffs on $300 billion worth of Chinese goods starting September 1. The world?s two largest economies in a game of economic chicken has markets worried, to say the least. Trade wars often lead to slower economies on both sides. One of this scale could feasibly cause a worldwide economic regression. As students of mortgage rates know, slow economic times typically means lower rates.
Fed rate cuts: The Federal Reserve is all but guaranteed to cut the federal funds rate on September 18. While the Fed doesn?t control mortgage rates directly, its actions and statements influence rates of all kinds, including mortgage rates.
Yield curve inversion: The 2-year/10-year yield curve inverted in mid-August. That phenomenon has accurately predicted the last seven recessions. Even if a recession doesn?t follow, markets are worried. Investors will strongly consider exiting the stock market and buying safer assets such as mortgage-backed securities (MBS). The more demand there is for MBS, the lower rates go.
If you?ve been thinking about a home purchase, refinance, or home equity line of credit, September is looking to be a great month to take action.
Tony Nguyen | NMLS#93776
Vision Quest Lending | 2860 Michelle Drive, Suite 140, Irvine, CA 92606
Direct 714-464-8042 | 877-318-0992 x6502 | Fax 866-394-9352
Email | tony@vqlending.com
Website | www.visionquestlending.com
BBB A+
Apply online:http://visionquestlending.com/free_quote/
Many factors are leading to a low rate environment. If we don?t see lower rate in September, we?ll likely see rates about as low as in August.
Rate-suppressing factors include:
Trade wars: President Trump is proposing new tariffs on $300 billion worth of Chinese goods starting September 1. The world?s two largest economies in a game of economic chicken has markets worried, to say the least. Trade wars often lead to slower economies on both sides. One of this scale could feasibly cause a worldwide economic regression. As students of mortgage rates know, slow economic times typically means lower rates.
Fed rate cuts: The Federal Reserve is all but guaranteed to cut the federal funds rate on September 18. While the Fed doesn?t control mortgage rates directly, its actions and statements influence rates of all kinds, including mortgage rates.
Yield curve inversion: The 2-year/10-year yield curve inverted in mid-August. That phenomenon has accurately predicted the last seven recessions. Even if a recession doesn?t follow, markets are worried. Investors will strongly consider exiting the stock market and buying safer assets such as mortgage-backed securities (MBS). The more demand there is for MBS, the lower rates go.
If you?ve been thinking about a home purchase, refinance, or home equity line of credit, September is looking to be a great month to take action.
Tony Nguyen | NMLS#93776
Vision Quest Lending | 2860 Michelle Drive, Suite 140, Irvine, CA 92606
Direct 714-464-8042 | 877-318-0992 x6502 | Fax 866-394-9352
Email | tony@vqlending.com
Website | www.visionquestlending.com
BBB A+
Apply online:http://visionquestlending.com/free_quote/
