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Published Date 4/15/2024

Rate cuts in 2024? There’s no ‘there there’ quite yet That much-anticipated drop in mortgage rates a whole slew of potential homebuyers hoped for? Nope. Didn’t happen. Inflation jumped in March, giving the U.S. Federal Reserve ammunition to hold off on those eagerly awaited interest rate cuts, says Realtor.com’s Clare Trapasso. “For the fourth month running, inflation ticked up—reaching 3.5% year-over-year in March, according to the most recent consumer price index summary— the biggest increase since August. Higher inflation coupled with lower-than-expected unemployment could result in the Fed keeping its interest rates higher for longer or even reducing the number of cuts this year. But that does sound puzzling to the non-financially savvy among us. Does that mean high unemployment and low inflation mean people could now afford a home? Mortgage rates are separate from the Fed’s rates but generally move in the same direction. “It means that mortgage rates are likely to bounce higher before they trend lower,” says Realtor.com’s Chief Economist Danielle Hale. “As far as how high they go, that’s going to depend on what happens with inflation.” Everyone was looking to the Fed to cut interest rates three times this year—in June, September, and December. Now, Hale believes they’ll lower rates only in September and December. “Those elevated rates have been tough for many homebuyers, especially first-time buyers, to contend with at a time when home prices are also high,” says Trapasso. The median home list price was $424,900 in March, according to the latest Realtor.com data. Reach out for more! Realtor, TBWS

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