👋 Good morning Home Buyer!
The next Federal Reserve meeting is eight days away, so buyers should expect volatile mortgage rates for the next eight days.
Here's why.
In November of last year, inflation rates decelerated, prompting Federal Reserve Chairman Jerome Powell to say that the Fed would probably start cutting interest rates soon.
Mortgage rates dropped sharply after those remarks!
30-year fixed-rate conventional mortgages kicked off a 10-week winning streak, which lowered the national average interest rate from 7.79 to 6.61 percent.
Homebuyer.com mortgage rates fell even further, reaching 5.875%. Home affordability jumped.
Then, inflation stopped slowing, so last week, the Federal Reserve had to acknowledge that it may not lower its interest rates as quickly as initially planned.
Wall Street is reacting in kind. Mortgage rates are reversing their year-end rally, and average mortgage rates are back over seven percent.
(Our mortgage rates are much lower, by the way.)
On April 30, 2024, the Federal Reserve begins its third of eight scheduled meetings for the year. The group is not expected to lower its Fed Funds Rate, but mortgage rates will bounce around leading up to the meeting.
If there are signs of an inflation slow-down this week, mortgage rates will drop. Otherwise, mortgage rates will rise. The moves could be sharp.
We are starting a mailing list that sends out daily mortgage rates. Reply to this email if you'd like to be on it. I'm building the list by hand in the beginning.
Also, I reply to every email you send about home-buying, mortgage rates, and government programs for first-time buyers. Email me anytime.
Ask me your questions, and allow me to assist. That's why I'm here!
Happy homebuying,
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