The Consumer Price Index (CPI) measures inflation on the consumer level, increased by 0.3% month-over-month, which was higher than expectations of 0.2%, and increased 0.3% to 3.4% year over year, above estimates of 3.2%. The Core CPI Rate, which strips out food and energy prices, increased by 0.3% for December and decreased by 0.1% to 3.9% year-over-year, in line with expectations.
While these numbers, for the most part, are slightly higher than expectations, we are still moving in an overall direction to lower levels if we only look back over the past six months. I would look for the FED not to make any moves at their next meeting and for rates to move to lower levels over the next 30-60 days, but only slightly.
Mortgage rates have fallen close to 1.5% since their posted high mark in November. If you were looking to borrow $500,000 in November and chose to wait, you just saved yourself close to $500 per month. What a difference two months makes????
I still believe that we will test the 6% 30-year fixed mark by late spring to early summer as I think we will see possibly up to 6 FED moves in 2024 by as much as 1.5% lower by this time next year.
Remember: Date the rate and marry the house!!! Housing prices will most likely move higher as opposed to lower in 2024!
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!
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Blog post date: Thursday, January 12, 2024