Mortgage rates continue to languish as summer winds down

“Mortgage rates reflected investor uncertainty over dueling economic indicators,” said George Ratiu, manager of economic research at Realtor.com. “The 10-year Treasury dropped early in the week as a result of consumer confidence hitting a six-month low, disappointing private payroll gains and cooling pending home sales. However, the Institute of Supply Management’s figures showed that manufacturing continued to advance in July. In addition, with rising inflation pressures leading regional Federal Reserve voices, like Dallas’s Robert Kaplan, to push for a September asset tapering announcement, the central bank’s continued stance that strong price gains are transitory is fueling conflicting views for markets. I expect rates to float near the 3 percent mark until the Fed takes a clear stance on asset purchases. But with tapering on the menu, I see rates making a jump toward the end of 2021.”