I Can See Clearly Now
This week’s “pop” hit is the 1972 hit “I Can See Clearly Now” by Johnny Nash. The month of September, from a mortgage rate perspective, has been dull with very little movement as the FED did exactly what most of us thought by cutting rates by .50%. This cut, while exciting to the uneducated “talking heads” on cable news, was widely anticipated, and thus, we saw mortgage rates not only NOT move lower, but they rose by about .125%. The old saying “buy on rumor and sell on news” has been basically what we have seen over the past several trading days.
However, we are beginning to get more and more information from the FED Governors who appear to be now looking at more than just the inflation numbers and more of a Macroeconomic perspective (I think someone said that several months ago 😊), especially in the employment arena which will become an even bigger issue over the coming months.
Now that the FED has gotten unwound from the “axel” they were wrapped around on inflation, we are now hearing more and more about additional cuts coming from them between now and the end of the year. Some projections are for as much as an additional 1% by the end of the year. If that were to happen, look for mortgage rates to finish the year in the mid to high 5% range.
No doubt about it… the picture is becoming clearer that mortgage rates, as well as credit card rates, should be heading to lower levels throughout the remainder of the year and into Q1 of 2025. It’s about time they are now looking at the overall economic picture, and maybe… just maybe… they can achieve their “soft landing” and not spin us into a deep recession. It looks like the FED may be seeing Clearly Now.
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, September 26, 2024
