Mortgage Rates Hit 11-Month Low Amid Labor Market Weakness and Yield Decline

Mortgage rates just crashed to their lowest point in nearly a year—and traditional finance is feeling the squeeze.

Yields tank as labor market wobbles

The fragile job market sent bond yields plunging, dragging mortgage rates down with them. Banks now face thinner margins while homeowners scramble to refinance.

Another reminder why decentralized finance doesn’t wait for economic reports to move—smart contracts execute, rates update in real-time, and nobody’s praying for the Fed to save them. Traditional finance? Still waiting on that quarterly statement.

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The weak jobs update caused the 10-year Treasury yield to fall as investors increased their expectations of a 50 bps rate cut at the September 16-17 Federal Open Market Committee (FOMC) meeting. The 30-year FRM closely follows the 10-year yield and fell as well.

Mortgage Rates Near Yearly Lows but Outlook Remains Uncertain

Despite falling rates, many potential homebuyers are still stuck on the sidelines as housing prices remain NEAR all-time highs. On top of that, a rate cut doesn’t guarantee lower mortgage rates. For example, mortgage rates pushed higher after the Fed lowered the federal funds rate last year, tracking the movement of Treasury yields.

While mortgage rates have eased to their lowest level in nearly a year, the outlook remains tied to upcoming economic data and Treasury yields. Much will depend on how the Fed balances rate cuts with labor market and inflation risks and how yields react in the weeks ahead.