Investors and market speculators used the long Labor Day weekend to mull over multiple news bulletins. Mortgage rates dropped in the wake of August's jobs report, released on Friday, which showed that while employment and wages are up, growth has tapered off. This was followed by developments regarding North Korea testing its most powerful nuclear weapon ever and Florida bracing for Hurricane Irma.
Rates moved lower on this combination of headlines as investors fled to the safety of US Treasuries by buying bonds, which are seen as a safer investment than stocks. Today, conforming no-point 30-year fixed mortgage rates averaging 3.75 percent while 15-year rates are near 3 percent. According to Freddie Mac, this marks a new low for 2017 thus far.
Lower rates could aid home sales and motive homeowners to refinance. Even slight fluctuations in mortgage rates can result in millions of households being eligible to refinance their home into better terms.
Do you have a question for Real Estate & Mortgage Analyst Mehran Aram? Submit your queries about a home purchase, refinance, or reverse mortgage via Aramco.Biz, social media (#AramcoReport), or over the phone at (866) 381-8888 and your questions may be featured in an upcoming article.