1. Mortgage rates fell to 6.35%, lowest since last October. 2. Lower rates may encourage home purchases this autumn. 3. Increased refinance and purchase applications noted. 4. Mortgage rates shift with 10-year Treasury expectations. 5. Investors await Federal Reserve comment post-FOMC meeting.
Lower mortgage rates typically stimulate economic activity, including housing. Historically, similar decreases have corresponded with increased consumer spending, which can positively influence SPY.
The decline in mortgage rates is a significant economic indicator that could boost SPY. Since SPY includes many housing market-dependent sectors, lower rates can lead to increased consumer confidence and spending.
The immediate effects of lower mortgage rates on housing and consumer confidence can quickly influence market sentiment. For instance, past declines in mortgage rates have increased housing market activity within months.