Let’s go over what’s been happening in our real estate market.
Have you been wondering about the current state of mortgage interest rates and where they might be headed? The truth is, predicting the future of interest rates is a bit like predicting the weather—nobody really knows for sure. However, let’s take a closer look at where rates have been in the past 24 months, where they stand today, and what we can reasonably expect in the future.
In the past week, mortgage rates experienced their most significant one-week improvement in over a year. This prompts us to reflect on the recent history of interest rates. In the first quarter of 2022, the Federal Reserve initiated an assertive monetary policy, raising the Federal Reserve funds rate seven times, starting in March of that year. However, the pace has slowed down since then, with only four rate hikes in total and none since July.
“Now might be an opportune time for those contemplating mortgages or refinancing.”
It’s essential to note that interest rates are closely tied to the 10-year Treasury yield, which is projected to decrease in 2024. This shift suggests that interest rates are likely to follow suit and move lower. Additionally, the reassuring news is that inflation is under control. According to the chief strategist of Home Economics, “Interest rates are likely to be lower, perhaps lower than many optimists think in the weeks and months to come. A year from now, it’s more likely than not that mortgage rates will be back under 6%.”
Considering these factors, now might be an opportune time for those contemplating mortgages or refinancing. If you’re seeking information about interest rates or any real estate market updates, feel free to call or email me anytime. Stay informed, and let’s navigate the evolving landscape of mortgage interest rates together.
