Mortgage rates fell fast yesterday, after the “Employment Situation Report” showed a less than rosy picture for labor markets. The report, which was originally scheduled for October 4th, was delayed due to the government shutdown. Conforming 30yr Fixed rates dropped down to 4.125% for many borrowers depending on the scenario, though some lenders remain at 4.25%.
Weak economic data historically pushes rates lower and yesterday was no exception, but there is more to the story. The peripheral effect of yesterday’s report is that it further solidifies that the Fed will likely hold off on reducing its purchases of Treasuries. These are the purchases that have helped to keep rates lower than what they would be normally. The recent threat of those purchases decreasing had a significant effect on mortgage rates during the summer months.
What does this mean for Knoxville home buyers and sellers? JUMP ON THESE MORTGAGE RATES while they are this low and save yourself some money on your monthly payment.