What’s the Latest with Mortgage Rates?

Recent headlines may leave you wondering what's next for mortgage rates. You may have previously heard there would be cuts this year that would bring rates down. That refers to the Federal Reserve (the Fed) and what they do to their Fed Funds Rate. Cutting or lowering the Fed Funds Rate doesn't directly determine mortgage rates but tends to impact them. But when the Fed met last week, a cut didn't happen — at least, not yet.

The Fed considered many factors in its recent decision, and most of them are complex. But you don't need to be bogged down by those finer details. What you want is the answer to this question: Does that mean mortgage rates aren't going to fall? Here's what you need to know.

Mortgage Rates Are Still Expected To Drop This Year
While it hasn't happened yet, that doesn't mean it won't. Even Jerome Powell, the Chairman of the Fed, says they still plan to make cuts this year, assuming inflation cools:
"We believe that our policy rate is likely at its peak for this tightening cycle and that, if the economy evolves as expected, it will likely be appropriate to begin dialing back policy restraint at some point this year."

When this happens, history shows mortgage rates will likely follow. That means hope is still there. As a recent article from Business Insider explains:
"As inflation comes down and the Fed can start lowering rates, mortgage rates should go down, too. . ."

What This Means for You
But you don't necessarily want to wait for it to happen. Mortgage rates are notoriously hard to forecast. So many factors are at play, and any one of those can change the projections as the economy shifts. And it's why the experts offer this advice. As Mark Fleming, Chief Economist at First American, says:
"Well, mortgage rate projections are just that—projections, not promises, and don't forget how hard it is to forecast them. . . So my advice is to never try to time the market. If one is financially prepared and buying a home aligns with one's lifestyle goals, then it could be the right time to purchase. And there's always the refinance option if mortgage rates are lower in the future."

If you want to move and time the market, don't. If you're ready, willing, and able to move, it may still be worth doing it now, especially if you can find the home you've been searching for.

Bottom Line
If you're looking to buy a home, connect with The Aaronson Group so you can have someone keep you up to date on mortgage rates and help you make the best decision possible.  Contact The Aaronson Group for any questions or concerns. Call: 949-388-5194 or email info@previewochomes.com