What’s the Latest with
Mortgage Rates?
by scott hobbs
(Article last updated: APRIL, 2024)
Recent headlines may leave you wondering what’s next for mortgage rates. Maybe you’d previously heard there were going to be cuts this year that would bring rates down. That refers to the Federal Reserve (the Fed) and what they do to their Fed Funds Rate. While cutting, or lowering, the Fed Funds Rate doesn’t directly determine mortgage rates, it does tend to impact them. But when the Fed met last week, a cut didn’t happen — at least, not yet. There are a lot of factors the Fed considered in their recent decision, but you don’t need to be bogged down by those finer details. What you really want is the answer to this question: Does that mean mortgage rates aren’t going to fall? Here’s what you need to know.
Mortgage Rates Are Still Expected To Drop This Year
While it hasn’t happened yet, that doesn’t mean it won’t. Even Jerome Powell, the Chairman of the Fed, says they still plan to make cuts this year, assuming inflation cools:
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“We believe that our policy rate is likely at its peak for this tightening cycle and that, if the economy evolves broadly as expected, it will likely be appropriate to begin dialing back policy restraint at some point this year.”
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When this happens, history shows mortgage rates will likely follow. That means hope isn’t lost. As a recent article from Business Insider explains:
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“As inflation comes down and the Fed is able to start lowering rates, mortgage rates should go down, too.”
But you don’t necessarily want to wait for it to happen. Mortgage rates are notoriously hard to forecast. There are so many factors at play and any one of those can change the projections as the economy shifts. And it’s why the experts offer this advice. As Mark Fleming, Chief Economist at First American, says:
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“Well, mortgage rate projections are just that, projections, not promises and don't forget how hard it is to forecast them. . . So my advice is to never try to time the market . . . If one is financially prepared and buying a home aligns with your lifestyle goals, then it could be the right time to purchase. And there's always the refinance option if mortgage rates are lower in the future.”
Basically, if you’re looking to move and trying to time the market, don’t. If you’re ready, willing, and able to move, it may still be worth it to do it now, especially if you can find the home you’ve been searching for.
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Something else to keep in mind is that there are many home buyers sitting on the sidelines today, just waiting for rates to drop. Today’s market, with limited inventory options, is competitive as it is, imagine what it’s goig to be like when all those buyer re-emerge and the market is even more competitive!
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Let's talk so you are prepared whenever you decide to buy your new home! It helps to have someone keeping you up-to-date on mortgage rates and the real estate market in general, to help you make the best decision possible.
Salt + Cedar Properties
260 Parker Avenue
Manasquan, NJ 08736
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Office: 732-529-2470
Cell: 732-996-3720
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Email: hobbsbroker@gmail.com
Get in touch any time!
SCOTT HOBBS
I fell in love with the Jersey Shore having spent many summers here ever since I was a small child. I am originally from Scotch Plains, NJ, but I eventually established roots down the shore and have been enjoying the Monmouth County lifestyle for more than two decades. Before entering real estate, I managed my own, highly successful, business working directly with Fortune 500 companies. There I sharpened and perfected my service, negotiating, and deal-making skills. I employ those strengths every day for the best interests of my clients, whether they are buying or selling property. I have traveled extensively around the world and during one visit to Colombia, I met my beautiful wife, Paola. Today we are raising our young son in Ocean Township.
ABOUT THE AUTHOR
©2022 by Scott Hobbs.