Mortgage Rates Plummet to Lowest Levels Since May 2023 --Act Fast!
Exciting news! Mortgage rates are making a significant move, hitting their lowest point since May 2023.
According to Freddie Mac's latest report today, the 30-year fixed-rate mortgage averaged a favorable 6.6% as of Jan. 11, down from 6.66% last week.
The 15-year fixed-rate mortgage is also following suit, showing a decrease from 5.87% to 5.76% this week.
For those patiently waiting on the sidelines, this is a positive development, especially for first-time homebuyers who have been keeping a close eye on rate changes.
Sam Khater, Freddie Mac's chief economist, highlighted the positive impact on housing affordability. However, he also pointed out that as purchase demand heats up, the already tight housing inventory may face additional pressure.
Despite a 9% decline in housing starts in 2023, signaling a challenge for those looking at new construction homes, there's a silver lining. Mortgage rates are continuing to decrease, thanks to softer inflation readings, leading to a boost in mortgage demand.
Turning our attention to economic indicators, December's retail sales report painted a positive picture of consumer spending, even after adjusting for holiday spending and inflation. This positive consumer activity comes as policymakers consider potential rate cuts.
The Federal Reserve, which initiated its restrictive monetary policy in March 2022, is expected to make at least three rate cuts in 2024, according to projections.
As we await the Federal Reserve's next meeting on Jan. 30-31, the overall trend of declining mortgage rates and positive economic indicators provides optimism for those considering entering the housing market in the coming months.
It's an exciting time for potential homebuyers!