We’re in some weird times. On Friday, it was a weaker-than-expected jobs report, and on Monday, there was a global stock market meltdown. The one bright spot is that weekly mortgage rates fell to their lowest level since February, so that’s good news for potential homebuyers or those who have been waiting to refinance or sell. They could even fall further because an interest rate cut from the Federal Reserve in September is all but guaranteed. Even so, it won’t fix the country’s housing crisis.
It’s still a volatile market, and for one thing, lower mortgage rates matter less if unemployment continues to rise; it’s hard to buy a home if you’re not working and earning money. Plus, mortgage rates still haven’t hit that magic number or sweet spot at around or under 6%, so it might not be enough to bring everyone on the sidelines back in the game. Either way, it’s important to note the federal funds rate, which is sitting at a more than two-decade high, also influences borrowing costs. The point is, there’s a lot of uncertainty at the moment, and even with an interest rate cut, it won’t magically resolve the fact that there are still not enough homes to house the country’s population.
