The National Association of REALTORS is reporting a 5.6% monthly drop in Pending Home Sales in September. The monthly decline in the Midwest was 8.3%. Rising home prices and the recent run-up in rates are seen as the main culprits in the housing slowdown.
Weaker-than-expected hiring from last month’s Non-Farm Payrolls report helped to push rates to 4-month lows last week.
Add to that any lingering effects from the government shutdown, and it’s highly likely the Federal Reserve will hold steady on their bond-buying program at their monthly meeting this week.
This program, known as Quantitative Easing, involves purchasing $85 billion in treasury bonds a month, which is helping to keep mortgage rates low.
Bottom Line for Mortgages
Mortgage rates are are at 4-month lows as we start the week. It is an excellent time for your clients to get pre-qualified for mortgages at First Federal Bank!