This Market Update is written by our Capital Market specialists each week to bring you insight into what's happening in the market and how it may affect mortgage rates and real estate trends.
Market Commentary:
For the week of Nov 24th – Nov 30th, 30-year and 15-year interest rates decreased. Mortgage rates are now the lowest they have been since early September, dropping for the fourth straight week. Positive economic data and commentary from Federal Reserve officials hinting at forthcoming rate cuts have helped push mortgage rates down this week.
More good news with Fannie Mae, Freddie Mac, and the FHA increasing loan limits for 2024 to higher than expected, further enabling homebuyers to have greater purchasing power.
Fed Watch: Looking ahead, all eyes are now on the upcoming December 13th Federal Open Market Committee (FOMC) meeting. According to the CME Group, 4.0% of forecasters predict an increase in interest rates, while 96.0% predict rates will remain the same. None of the forecasters expect rates to decrease. Based on these charts, there is currently a 46% chance the Fed will begin to lower rates as early as March 2024. This would give mortgage rates time to recede ahead of the spring buying season, providing more affordability for home shoppers.
News You Can Use:
- Analyst who correctly predicted 8% mortgage rates has a new target
- Fed’s favorite gauge shows inflation rose 0.2% in October and 3.5% from a year ago, as expected
- Home Prices Continue to Rise in September
- About 8.2 Million People Moved Between States in 2022
*Communication is intended for Industry Professionals only and not intended for Consumer Distribution
Interest rate and annual percentage rate (APR) are based on current market conditions as of 12/01/2023, are for informational purposes only, are subject to change without notice and may be subject to pricing add-ons related to property type, loan amount, loan-to-value, credit score and other variables. Estimated closing costs used in the APR calculation are assumed to be paid by the borrower at closing. If the closing costs are financed, the loan, APR and payment amounts will be higher. Contact us for details. Additional loan programs may be available. Accuracy is not guaranteed, and all products may not be available in all borrower's geographical areas and are based on their individual situation. This is not a credit decision or a commitment to lend. actual interest rate, APR, and payment may vary based on the specific terms of the loan selected, verification of information, your credit history, the location and type of property, and other factors as determined by Prosperity Home Mortgage, LLC. Not available in all states. Rate is as of 12/01/2023 and is subject to change at any time without notice. Opinions, estimates, forecasts, and other views contained in this document are those of Freddie Mac's economists and other researchers, do not necessarily represent the views of Freddie Mac or its management, and should not be construed as indicating Freddie Mac's business prospects or expected results. Although the authors attempt to provide reliable, useful information, they do not guarantee that the information or other content in this document is accurate, current, or suitable for any particular purpose. All content is subject to change without notice. All content is provided on an "as is" basis, with no warranties of any kind whatsoever. Information from this document may be used with proper attribution.
