Mortgage Rate Roller Coaster

What’s going on with mortgage rates?!? The past year has been an emotional roller coaster of rate drop promises, for those trying to afford to buy a home, as well as those of us who make a living in the mortgage and real estate industries.

2024 was off to a good start, with a lot of promises for steady improvements, but the early February FED announcement that they wouldn’t be lowering rates just yet caused a strong correction, and pushed our hopes for any significant rate improvements off until after the first half of this year.

The economy is still running strong, so the FED has no inclination to reduce interest rates until later in the year. Many believe the market’s anticipation of the FED dropping rates in March is part of what resulted in our correction earlier this month — what had been done, had to quickly be undone.

If there is anything the past four years have taught us, it’s that trying to anticipate where mortgage rates, and the market in general, will go is a fool’s errand. There are too many moving parts, and even the experts keep missing the mark.

So when is the best time to buy a home?

The best time to buy a home is when YOU feel comfortable with today’s terms based on your financial profile. While you may anticipate a refinance down the road that will save you short and long-term money, do not buy assuming that will happen. We are still trying to recover from the chaos of a mismanaged pandemic, this is an extremely disruptive election year, and we’re seeing unexpected “global events” pop up around every corner. There are no guarantees that rates will improve, and there are no guarantees that rates won’t go up again.

Despite higher than desired interest rates that have kept many buyers out of the market, low inventory has been a major factor in keeping home prices rising. If you didn’t buy last year because you were waiting for rates to come back down, you missed out on an average 5.2% property appreciation. Be sure to weigh this in as a factor when deciding whether you buy now or wait.

I’m always available for a free consultation and assessment of your purchasing power. No hard sell! I am here to be of service and build lifelong client relationships. Reach out any time.

Tammy Metzger

Residential Mortgage Loan Originator. Dog Mom. Knowledge Seeker. Voracious Reader. Solo. Outdoors enthusiast. Genre Film Lover.

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