Currently Reading

The Mortgage Outlook for September

Advertisement
Economics

The Mortgage Outlook for September

NerdWallet’s mortgage and real estate expert predicts mortgage rates will rise modestly during the first half of September and then level off.


August 30, 2021
Teeter totter with mortgage rate and house
Photo: stock.Adobe.com

Holden Lewis, NerdWallet’s mortgage and real estate expert, predicts mortgage rates will rise modestly during the first half of September and then level off.

The roots of this prediction stretch all the way back to March. Rates went up sharply that month as COVID-19 vaccines rolled out, and we were optimistic that the disease would soon get under control and the U.S. economy would boom. But mortgage rates fell from April through July, with peaks and valleys.

The rate on the 30-year fixed-rate mortgage bottomed out in early August at 2.77% APR. Then, it started rising, hitting 2.98% in the last full week of the month.
That's because, after the Federal Reserve’s July 27-28 meeting, Fed policymakers started talking about the timetable for reducing the amount of money the central bank adds to the banking system.

This forecast will be wrong if the toll from COVID-19 gets a lot worse, enfeebling the economy; in that case, mortgage rates might drop. If I'm misreading the Fed and it doesn't announce a timetable Sept. 22, and instead delays an announcement until a later meeting, mortgage rates might fall afterward.

It's also possible that mortgage rates already completed their pre-Fed climb in August and will be steady through most of September. Finally, instead of announcing a timetable for cutting back on debt purchases later in autumn, the Fed could actually start the process soon after the September meeting. Such a surprising announcement could result in an abrupt rise in mortgage rates.

Read More

Tags

Related Stories

Labor + Trade Relations

November Sees Weak Hiring But More Labor Recruits

What a contradictory November report means for an industry combating a massive labor shortage

Economics

Declining Unemployment Rates Suggest Economic Recovery Despite Lingering Labor Shortage

The construction industry is actively hiring and recruiting, but many more new workers are needed to increase housing supply

Economics

Inflation Concerns Elevated by Labor Shortage and Lumber Tariffs

How the long-term effects of high inflation could carry over into 2022 

Advertisement
Advertisement

More in Category




Advertisement
Advertisement

Create an account

By creating an account, you agree to Pro Builder's terms of service and privacy policy.


Daily Feed Newsletter

Get Pro Builder in your inbox

Each day, Pro Builder's editors assemble the latest breaking industry news, hottest trends, and most relevant research, delivered to your inbox.

Save the stories you care about

Lorem ipsum dolor sit amet lorem ipsum dolor sit amet lorem ipsum dolor sit amet.

The bookmark icon allows you to save any story to your account to read it later
Tap it once to save, and tap it again to unsave

It looks like you’re using an ad-blocker!

Pro Builder is an advertisting supported site and we noticed you have ad-blocking enabled in your browser. There are two ways you can keep reading:

Disable your ad-blocker
Disable now
Subscribe to Pro Builder
Subscribe
Already a member? Sign in
Become a Member

Subscribe to Pro Builder for unlimited access

Lorem ipsum dolor sit amet, consectetur adipisicing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua.