Mortgage Rates Brought Back Under Control
As July gave way to August, the mortgage market saw a bit of recovery after the significant rise in rates.
The bad news is that this recovery in mortgage rates can be largely attributed to the recent Employment Situation Report, which showed less job creation than was initially anticipated. All the same, this recover represents an important development for consumers in that it prevents what was promising to be a great surge upward. Meanwhile, recent activity in the European markets gives us good reason to believe that this trend is here to stay.
In the last week of July, European borrowing rates reached an all-time low. This applies downward pressure to American mortgage rates. Since Europe will likely have to make a significant recovery in order to reverse this trend, it may be safe to assume that the US mortgage market will continue to be kept in check for a while.
