The Latest News For Mortgage Rates
Some of the headlines that have been posted may lead you to question what is in store for mortgage rates. A short while back there was discussion that there were going to be cuts that would bring rates down. This was in particular to the Federal Reserve (The Fed) and the Fed Funds Rate. Any fluctuation of the Fed Funds Rate does not directly set mortgage rates, but it does often impact them. As of the recent meeting the Fed had, a cut was not yet made. While there are many things that go into how the Fed makes their decision to make a cut, the real question everyone has is if this means that mortgage rates will soon fall or not.
Mortgage Rates Are Should Still Fall This Year
Just because it has not yet happened does not mean that it is not going to. Jerome Powell, the Chairman of the Fed, says they still plan to make cuts this year, assuming inflation cools:
“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.”
When this occurs, historical patterns show mortgage rates will likely follow. That means hope isn’t lost. As a recent release from Business Insider explains: “As inflation comes down and the Fed is able to start lowering rates, mortgage rates should go down, too. . .”
What This Means
Any rate movement isn’t necessarily wise to wait for it to happen. Mortgage rates are historically difficult to forecast what and when will happen. There are so many factors at play and any one of those can change the projections as the economy changes. And it’s why the experts offer this advice. As Mark Fleming, Chief Economist at First American, says: “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.”
So in the end if you’re looking to move and trying to time the market, don’t bank on any specific time in the future. If you’re ready, prepared and able to move then it may still be worth it to do it now, especially if you can find the right home you’ve been in search of.