Hello Home Buyer.
Here’s the biggest story in the mortgage world right now (and it's really good news for home buyers).
A Gift From The Federal Reserve
The Federal Reserve did not raise the Fed Funds Rate after its December 12-13, 2023 meeting, which didn't come as a surprise. However, after its meeting, Federal Reserve Chairman Jerome Powell gave a press conference (as he often does) and, in front of reporters, he said the Federal Reserve has started talking about moving the Fed Funds Rate lower. That was a big deal.
Refresher: What is the Federal Reserve
The Federal Reserve is the country's central banker. Their primary role is keeping inflation rates steady. Since the pandemic, The Fed's had their work cut out for them. To stop rising prices and slow the economy, the Fed uses a tool called the Fed Funds Rate - like tapping the brakes on a car. The Fed may not need those brakes for a while and that's good news for mortgage rates.
Look What Happened To Mortgage Rates
Mortgage rates, like the Federal Reserve, are sensitive to inflation. When inflation is expected to rise, mortgage rates generally go up. Inflation is why mortgage rates zoomed past 8% this summer. Now, the slowing of inflation is bringing rates back. We were showing 6.00% mortgage rate on the Homebuyer.com website last week. What. a. turnaround.
What You Can Do About It
Mortgage rates keep on dropping so see how much house you can afford to buy at today's lower rates. Most home buyers are seeing a 20 percent increase in purchasing power since the start of November.
Want help? Our whole company here for you. If you have questions or want to learn more, visit us on our website or hit reply to this email.
Happy Homebuying!
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