Financial Panic Don Dey Loom, Mortgage Rates Dey Rise Like Pounded Yam

New York, USA – E be like say financial wahala dey come as mortgage rates don rise for second week in a row. Even though Federal Reserve don gree reduce interest rate for di first time since nearly one year, e no clear say relief go show face for buyers anytime soon.

Dis week, Freddie Mac report say average rate for 30-year fixed mortgage don climb to 6.34%, wey be small increase from 6.3% wey e be last week. E mean say, pipo wey dey find house go still chop dem money as mortgage rates dey rise. Last year, di average rate be 6.12%, so e clear say things don change quick quick.

Mortgage rates no just dey waka on dia own; dem dey follow di 10-year Treasury yield and di price of mortgage-backed securities. E mean say as economic data dey change and market dey expect wetin go happen, na so mortgage rates dey adjust too. Hannah Jones wey be Senior Economic Research Analyst for Realtor.com talk say, “Mortgage rates closely track 10-year Treasury yields, which shift in real time with new economic data and market expectations.” (So true, e no be say we dey guess here o!)

A dem wan buy house, wetin you go hat for your eye? Your credit score, how much you fit put as down payment, and de type of loan wey you choose all get part to play. So, if you wan enter dis market, better make sure say your house no dey full of dem “oh my God what have I done” moments.

Jerome Powell, wey be Chair of di Federal Reserve, don cut di federal funds rate by 25 basis points for September 17. Dis na im first reduction since December 2024, and wetin bi di point? E mean say dem dey worry about di economy growth. But e no mean say dem dey jolly go lucky o; dem dey watch market closely.

Markets don already dey assume rate cut go land, so e cause Treasury yields to drop small, and for brief moment, mortgage rates go come down too. But once di Fed no gree clear wetin dem wan do next, investors don begin adjust dem thinking, wey lead to di increase wey we dey see now.

Jiayi Xu, senior economist for Realtor.com, talk say dem expect rates go dey tight like waist for market as everybody dey watch di implication of government shutdown. E be like say dem no wan rush enter any conclusion just yet, especially now wey Federal Reserve don cut di policy rates for di first time in nine months. Dem dey play chess while we dey play checkers.

So, as you dey ponder your next move, remember say di bounce of di Fed’s rate cut fit concern job market pass inflation right now. Who go smile if mortgage rates reduce? Borrowers go happy as long as rates dey fall! But if dem dey fear inflation go come back, then lenders fit hold back on di rates wey dem dey offer.

At di end of di day, di market dey constant with suspense, but di one thing wey dey clear na say, everybody dey watch di moves wey di Fed go make next. Na wetin you fit create opportunity? Omo, na your palm wine and small-talk go help ease di tension. But sha, no matter how e look, anybody wey dey plan buy house better get dem check straight.