Overview
- The 30-year fixed mortgage rate averaged 6.66% on Thursday, rising 1 basis point from the prior week and returning to levels seen four weeks earlier.
- July’s Personal Consumption Expenditures index printed 3.7% year-over-year, a touch hotter than forecasts that helped sustain elevated Treasury yields and kept mortgage rates from falling.
- Market participants say Fed Chair Kevin Warsh’s Jackson Hole address is a likely trigger for further moves because any surprise could push Treasury yields and mortgage costs higher.
- Demand measures are softening as mortgage applications fell for a second straight week and Realtor.com reports the median listing price declined year-over-year for a ninth month, signaling a rebalancing market.
- For consumers the result is higher monthly payments that cut buying power and keep many owners reluctant to sell, even as growing inventory and slower price growth give active buyers more room to negotiate.