With the metrics for inflation cooling, the conversation around rates has turned toward when — and how many — cuts the Fed will make in 2024.
Yesterday, the Fed changed its tune about "higher for longer" and gave the markets the expectation that it will cut rates several times next year. Although the Fed does not directly control mortgage interest rates, its monetary policy plays a key role in what rate mortgage investors need to make lending worthwhile.
Mortgage rates began dropping rapidly yesterday in the single biggest one day improvement we've had all year.
Mortgage rates started 2023 in the low 6.0's, moved up rapidly in the fall to their peak of about 8.125% in October, and have started moving down towards the mid 6.0's again, according to QHL Lending.
A few pieces of advice in an environment where rates may decrease:
Don't wait on rates to improve to buy. There will be too much competition if you do.
Lower costing loans are probably smarter - buying the rate down may work against you.
Buy the home you fall in love with and fits in your budget – be conservative and active in this market
The end of the year is approaching quickly. Please be safe and pay attention while driving!
ALERT! New Crossings home for sale
Holiday special: $1,084,000
4 beds, single story, 2 fireplaces and all the updates you want to see! Come see me this weekend!
Help a vet
Please help me find a veteran family that needs a new home for the holidays!
Listed at $1,129,000. VA loan is assumable at 2.875% (are you kidding me?).
