Here\u2019s a quick market update for the week of August 31, 2026. This could be an important week for rates, with several employment reports leading up to Friday\u2019s jobs report.<\/p>\n\n\n\n
For more information on this loan, contact me at kevin@garykent.com or call me at 760-758-5370 and I’ll connect you to our lender. Here\u2019s a quick market update for the week of August 31, 2026. This could be an important week for rates, with several employment reports leading up to Friday\u2019s jobs report. Bond Market & Rates \u2022 The key 10-year Treasury is … Continue reading
Bond Market & Rates<\/strong>
\u2022\tThe key 10-year Treasury is at 4.756%, . 036% higher than Friday. This should not be enough to raise rates, but it will make the cost of a rate buydown higher.
\u2022\tRenewed fighting involving Iran pushed oil prices higher over the weekend. Higher oil prices can lead to more inflation, which isn’t good for Treasury yields or mortgage rates.
\u2022\tFed Chair Kevin Warsh\u2019s comments at Jackson Hole were also more aggressive on inflation than the market had hoped, increasing the possibility of a Fed rate hike in September.
\u2022\tOn the positive side, we\u2019re seeing some signs that the labor market is slowing, which could eventually help bring rates down.
\u2022\tAnother issue affecting rates is the national debt, which recently passed $40 trillion.
\u2022\tIn the short term, the government needs to sell a large amount of Treasury bonds to fund ongoing deficits and refinance existing debt. When more Treasuries hit the market, investors may demand higher yields to buy them. That can push the 10-year Treasury higher and put pressure on mortgage rates. The fancy economic term is \u201cDisintermediation of Funds.\u201d
\u2022\tFor the Longer term, if the government continues running large deficits, the debt and the interest needed to service it will keep growing. That could keep Treasury yields and mortgage rates higher than they otherwise would be\u2014even if the Fed eventually starts lowering short-term rates.
What to Expect This Week<\/strong>
The job market will be the main focus this week:
\u2022\tTuesday (9\/1): JOLTS Job Openings & ISM Manufacturing
\u2022\tWednesday (9\/2): ADP Private Payrolls
\u2022\tThursday (9\/3): Weekly Jobless Claims & ISM Services
\u2022\tFriday (9\/4): August Jobs Report & Unemployment Rate<\/p>\n\n\n\n
Friday is the big one.<\/em><\/strong> A weaker jobs report could bring the 10-year Treasury down and give us some improvement in mortgage rates. A stronger report could increase the chances of a September Fed hike and push rates higher. Another example of bad news (job loss) bring good news (rate cuts), or vice versa.
30-Year Fixed Rate Snapshot<\/strong>
\u2022\t10-year Treasury: approximately 4.75%
\u2022\tFreddie Mac 30-year average: 6.66% as of August 27
\u2022\tGeneral conventional range: approximately 6.25%\u20136.75% for well-qualified borrowers, depending on credit, down payment, loan size and points.
Lock Now or Wait?<\/strong>
If you are closing in the next 2\u20133 weeks: I would lean toward locking. With Friday\u2019s jobs report, higher oil prices and uncertainty about the Fed, there\u2019s still plenty of risk that rates could move higher.
If you\u2019re 30\u201360 days out: There\u2019s a little more room to wait. If the jobs data comes in weaker than expected, we could see the 10-year Treasury move lower, creating a better opportunity to lock.
Assets & Home Equity as Income Loan<\/strong>
Sometimes good people don\u2019t tick all the boxes on a traditional loan application.
This is a great option for home buyers with plenty of assets or home equity who don’t show enough traditional monthly income to qualify.
\u2022\tRetirement assets: We can use 60% of eligible retirement assets and divide that amount by 60 months to create qualifying monthly income.
\u2022\tHome equity: We can use 40% of eligible home equity and divide that amount by 60 months to create additional qualifying income.
\u2022\tEven better, both can be used for the same borrower.
Example: A borrower with $1 million in eligible retirement assets could potentially generate $10,000 per month in qualifying income. If they also have $750,000 in eligible home equity, that could add another $5,000 per month.
That\u2019s potentially $15,000 per month of qualifying income without relying on traditional employment income.
This can be a great solution for retired or high-net-worth clients who have significant wealth but may have difficulty qualifying using their tax returns or traditional income<\/p>\n\n\n\n
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