Hang on to Your Horses!

Yesterday, the 30-year mortgage rate dropped to its lowest since August 2022. This is GOOD NEWS, right?!?!?

Seeing as it happened right after the Bureau of Labor Statistics released their latest jobs report last Friday, it's more likely a sign of a troubled economy than a sturdy one.

With a jobs report that indicates the U.S. is likely already in a jobs recession, the lower rate suggests investors are buying up 10-year Treasuries because they are seen as safe investments in uncertain times. Increased demand causes the rate to drop, which the mortgage rate often follows for a few reasons. In a nutshell, as long as investors think the economy isn't doing well, mortgage rates will continue to fall until they are just a little higher than the Fed Funds Rate.

In PLAIN speak, hang on to your horses! If you're scrunched financially right now, this is the time to make your move. Cut expenses like crazy, move out of town for cheaper housing, save as much as you can, look for ways to bump up your income or grab a job in a recession-resistant field like healthcare, utilities, auto repair, etc. And if you have a solid investment plan, STAY THE COURSE!!!!!