Do You Feel It? Rates Moving Lower Just In Time for Spring
This week’s musical inspiration comes from the 1981 pop hit “Can You Feel It” from the Jackson Five. Maybe it is just me, but I feel things are changing for the better regarding interest rates. We have seen the U.S. 10-year treasury go from a high of 4.81% in mid-January to its current level of around 4.30%. While the 30-year fixed-rate mortgage does not necessarily follow the direction and or percentage movement of the 10-year, it does run very close when watching the direction of 30-year fixed-rate mortgages. By mid-January, we were pushing very close to mortgage rates near 7.50%, and now we are just below 6.875% in a little over 30 days, and it does not look like this trend is stopping anytime soon.
The U.S. markets, as well as the global markets, are beginning to realize that the “specter” of tariffs, job cuts, deportations, and an overall change in economic policies may have a slowing effect on not only the U.S. economy but economies worldwide. Slowing economies typically lead to lower prices. As overall prices decrease, inflation falls, which causes rates—including mortgage rates—to drop as well. The concern of a slowing economy was reflected in this week’s release of the consumer confidence numbers, which fell to their lowest levels since August of 2021 when the 10-year treasury was hovering around 1% and mortgage rates were under 4%. I am not saying, by any stretch, that mortgage rates are heading back to 4% or below, but I do believe we will test the 6% level and maybe even in the high 5% range by mid-summer.
This overall slowing in the economy may be just what the doctor ordered for the current slow housing market. Falling rates, especially if we can get closer to 6% or even into a high 5% territory, could restart the housing sales engine. Despite what you may hear, there is no doubt we are in a BUYER’S market. Houses in Metro Atlanta are now on the market for an average of 68 days as compared to just a couple of years ago when it was almost less than 15 days. Overall, listings in Metro Atlanta are up 12% compared to last year. All the signs are there for a recovery in the Atlanta housing market for 2025… Can You Feel It?
Remember… the BEST RATE… IS A LOCKED RATE… with a float down… ask me about our program that allows you to lock your rate and then float down if rates move lower.
Make sure you (or your buyer) get pre-approved before looking at homes so we can determine if you are looking in the correct price range and have you armed to submit an offer with a pre-approval letter!
Thank you for reading this blog. I hope that the facts and insights I share provide value to you.
If you’d like to allow me to invade your inbox and receive a weekend update from me each week, please provide your name and email address, and I’ll start sending over more facts and insights like you just read, as well as current market rates and news. If you have a topic you would like me to consider covering, please feel free to send it over. Who knows… I may write about it!
Blog post date: Thursday, February 27, 2025
