𝗛𝗶𝗴𝗵𝗲𝗿 𝗺𝗼𝗿𝘁𝗴𝗮𝗴𝗲 𝗿𝗮𝘁𝗲𝘀? 𝗪𝗵𝗮𝘁 𝗵𝗮𝗽𝗽𝗲𝗻𝗲𝗱?

Rates have been pushed higher by recent economic data, including reports last week showing the labor market is stronger than was thought with lots of new jobs created and unemployment moving lower. This week's inflation data also came in slightly higher than expected.


𝗗𝗶𝗱𝗻'𝘁 𝘁𝗵𝗲 𝗙𝗲𝗱 𝗷𝘂𝘀𝘁 𝗰𝘂𝘁 𝗿𝗮𝘁𝗲𝘀?!

Yes, but the policy rate that the Fed cuts does not directly control mortgage rates. Mortgage rates had already moved lower weeks earlier as markets speculated the Fed would start cutting its policy rate.


𝗦𝗼, 𝗵𝗼𝘄 𝗵𝗶𝗴𝗵 𝘄𝗶𝗹𝗹 𝗿𝗮𝘁𝗲𝘀 𝗴𝗼 𝗮𝗻𝗱 𝘄𝗶𝗹𝗹 𝘁𝗵𝗲𝘆 𝗰𝗼𝗺𝗲 𝗯𝗮𝗰𝗸 𝗱𝗼𝘄𝗻 𝘀𝗼𝗼𝗻?

The current forecast is that rates will stay here for awhile or could even move slightly higher. We will eventually see rates come down again, but that is only likely when the economy slows down and the labor market shows weakness.


𝗜𝘀 𝘁𝗵𝗲𝗿𝗲 𝗮 𝘀𝗶𝗹𝘃𝗲𝗿 𝗹𝗶𝗻𝗶𝗻𝗴 𝘁𝗼 𝘁𝗵𝗲𝘀𝗲 𝗵𝗶𝗴𝗵𝗲𝗿 𝗿𝗮𝘁𝗲𝘀?

Higher rates are no fun - period. Paying more each month for a home than you thought you would pay is a downer.


HOWEVER...

Higher rates are opening the door to more homes, and it is helping restore balance to the housing market. You can now find homes to purchase that aren't in a bidding frenzy, and borrowers getting a mortgage are not finding as much competition from cash buyers. Less demand means you have a better shot of landing your dream home!


I have some ideas on how to help make your payments more affordable while rates are higher. Contact me today and I'll tell you why now is still a great time to buy a home, and how I can help!

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