Big Market Movement After Powell’s Speech – Here’s What to Know

Big news from the market this morning — and it’s (finally) the kind that helps.

Fed Chair Powell gave his Jackson Hole speech, and the market clearly heard what it wanted: a green light for a rate cut on September 17.

His tone shifted notably from earlier this summer, and the response has been immediate:

What Powell Said:

• Job growth has slowed more than previously reported

• Risks to employment are rising

• Growth has dropped to nearly half of what it was earlier this year

• Tariff-related inflation is expected to be short-term and manageable

• His conclusion: “Policy may warrant adjusting,” i.e. a rate cut is now firmly on the table

  
  

Market Reaction (as of now):

• Mortgage bonds are rallying

• 10-Year Treasury just broke below 4.29%, heading toward 4.20%

• Lenders are starting to improve rate sheets slightly, but many will hold back a bit until next week

  
  

What We’re Watching Next:

• September 5 Jobs Report – Weak data would likely lock in the Fed’s decision

• September 11 CPI + Sept 9 QCEW revisions – More pressure points for a cut

• Current rate sheet momentum – We’re watching closely to see if lenders pass on gains today or hold them into next week’s pricing

  
  

What This Means for Your Clients:

• Not time to rush, but momentum is building

• We’re advising clients to float with caution, ready to lock if pricing improves further

• For buyers on the fence, this could be the start of a window where affordability improves just enough to help movement

• For recent buyers or higher-rate borrowers, we’re reviewing refi strategy under our Strike Rate system — no bait-and-switch, no pushing points

  
  

If you have buyers wondering about timing or clients asking about a refi, let’s talk. This is the type of week that moves the market, and we’ll keep you informed every step of the way.