Nuwave Weekly Rates - 8.24.22

Rates have increased substantially this week as lenders and Wall Street await FED Chairman Jerome Powell's speech at the Jackson Hole Meeting on Friday (8.26).

The impacts of this speech will be felt across both the stock & bond markets, and will ultimately affect lender's interest rates and home prices.

If the FED delivers a speech that is hawkish towards inflation, the market can expect rates to continue to rise throughout September and into the winter.

If his speech delivers the perception that the FED expects to taper off these rate hikes and that inflation is under control, we could see rates swing back down similar to what we saw after the July meeting from the FED.

I personally believe that the speech will be the former (more hawkish), thus continuing the rate hikes moving into the fall. However, I do not expect rates to swing up quickly over the weekend. I think it will be a gradual climb through September. It is clear in the rate increases this week, that the secondary market is pricing in this expected news from the FED and getting ahead of it.

If I had clients in the market or getting under contract over the weekend, I would wait to lock a loan until Monday when the dust settles post-FED speech.

The market will be patiently waiting. You can watch the speech live streamed Friday at 10AM CST - Live Stream