Published Date 11/6/2023
-> Everyone’s hoping for it — from buyers to sellers to investors to builders and all those in between. The run-up in mortgage rates might be coming to an end. When the U.S. Federal Reserve voted on Wednesday to hold its short-term interest rates steady, it suddenly took the pressure off of mortgage interest rates. For now. The big hope is that rates halt their relentless climb. “My expectation is a gradual slowdown in mortgage rates,” says Realtor.com Chief Economist Danielle Hale. In a push to combat inflation, the Fed has been raising rates by making borrowing money more expensive. Interest rates are currently at a 22-year high, while inflation has come down from a peak of 9.1% in June of last year to 3.7% in September. So what’s the magic number? When will we begin seeing the central bank begin cutting rates (which is expected to result in lower mortgage rates)? Not until inflation is firmly within its target of 2%. “The Fed has been pretty clear and consistent that rates are going to need to be higher for longer until inflation is under control,” says Hale. To add to all this, the central bank could vote to continue raising rates later this year or next, as Fed Chair Jerome Powell announced that no one is making any decisions about future meetings. Realtor.com’s Clare Trapasso explains how higher mortgage rates have effectively frozen the housing market. “Homeowners are reluctant to give up the sub-3% rates they locked in during the COVID-19 pandemic, so they’re staying put instead of trading up or down into new homes. That’s worsening the housing shortage.” She adds that buyers are struggling to afford today’s high home prices at a nearly 8% mortgage rate, while many have dropped out of the market or are waiting for rates to come down. Reach out for more details! RealtorMag, TBWSAll information furnished has been forwarded to you and is provided by thetbwsgroup only for informational purposes. Forecasting shall be considered as events which may be expected but not guaranteed. Neither the forwarding party and/or company nor thetbwsgroup assume any responsibility to any person who relies on information or forecasting contained in this report and disclaims all liability in respect to decisions or actions, or lack thereof based on any or all of the contents of this report.
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Jackie Barikhan - Summit Lending
17011 Beach Boulevard Suite 1100, Huntington Beach, CA CA 92647
Company NMLS: 914312
Office: 949-855-0760
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Email: jackie@mylenderjackie.com
NMLS: 914312
Cell: 949-600-0944
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