Posted on 08/02/2024 9:34:54 AM PDT by Miami Rebel
Many prospective home buyers have been waiting for lower mortgage rates to pull the trigger. Those who have been on the sidelines by choice may not want to wait too long.
The Federal Reserve said it could lower interest rates in September.
Those further mortgage rate declines could be in view, which would lower housing costs. Forecasts published by the National Association of Realtors, Fannie Mae, and the Mortgage Bankers Association foresee rates ending the year in the mid-to-high 6% range, down significantly from this spring’s high of 7.22%. Mortgage rates could fall to 6.5% or even lower in the near term, National Association of Realtors chief economist Lawrence Yun said in a Friday statement as the 10-year Treasury yield slid to its lowest level since December. A few factors could drive them even lower.
Buyers so far have shrugged. Purchase loan applications measured by the Mortgage Bankers Association have sagged for three straight weeks through last Friday to a level only about 6% off its multidecade low. “Borrowers may be waiting for signs that mortgage rates will drift lower as the Federal Reserve begins to cut short-term rates,” Mike Fratantoni, the trade group’s chief economist, said this week.
Those further mortgage rate declines could be in view, which would lower housing costs. Forecasts published by the National Association of Realtors, Fannie Mae, and the Mortgage Bankers Association foresee rates ending the year in the mid-to-high 6% range, down significantly from this spring’s high of 7.22%. Mortgage rates could fall to 6.5% or even lower in the near term, National Association of Realtors chief economist Lawrence Yun said in a Friday statement as the 10-year Treasury yield slid to its lowest level since December. A few factors could drive them even lower.
(Excerpt) Read more at barrons.com ...
yeah but now people are losing their jobs - 15000 at Intel alone. that sort of news paralyzes people. Fed appears to be behind thw curve - so i expect worries about economy to grab headlines for a while.
On Friday, August 02, 2024, the national average 30-year fixed mortgage APR is 6.82%. The average 15-year fixed mortgage APR is 6.29%, according to Bankrate's latest survey of the nation's largest mortgage lenders.
According to historical data, the average 30-year fixed mortgage rate on August 2nd, 2020 was around 3.07%. This rate was reported by Freddie Mac, a leading mortgage market data provider.
Voters, what changed?
The Fed will lower interest rates before the election, then jack them back up in January when Bidenflation takes off again.
What is declining faster, rates or the stock market.
6.5%? Come on. I’m paying 3.62 for 3 and a half more years. Not impressed.
Question: Should I continue to pay that 3% for the next 3 years or pay it off and avoid the interest? I’d have to sell my other one and I’m 66. No need to build a bigger empire.
https://www.youtube.com/watch?v=B_nGEj8wIP0
Milton Friedman
Recorded at University of San Diego & San Diego Chamber of Commerce ©1978
27:16 min
"In the United States, we have also had, and in most countries, a third less important factor that has contributed to excessive increases in the quantity of money, and that has been mistaken policies by the central bank."
"Professor Siegan referred to the mistake of the Federal Reserve Bank inthe late '20s and early '30s. From 1929 to 1933 the quantity of money in the United States went down by a third, and that was a major factor that produced the catastrophe. That was the great mistake of the Federal Reserve. It learned from that mistake. Government agencies, like people, don't always make the same mistake the next time; they make a different one. And since that period, the central banks have tended to make the mistake in the opposite direction. Their mistake has almost always been caused by confusing their function, by thinking that they had something to do with interest rates instead of recognizing that their real function was to control the quantity of money."
Thats why there is all this bad news about the economy now being allowed to be published. They are trying to force the FED to lower interest rates for a cheap sugar high before the election.
Which leads to more Inflation just in time for the Fall.
“They are trying to force the FED to lower interest rates for a cheap sugar high before the election.”
Imho they waited too long.
There is about a six month lag time on this stuff.
It’s probably an attempt to give Harris and Biden a talking point leading up to the election: “In the past three months, mortgage interest rates have dropped .5%, a record decline!!!”.
RINOs will vote for it and shame anyone who votes against spending more money as racist and cruel.
In America today there is no sacrifice, courage, and we have a crisis of conscientiousness
Inflation is already throught the roof, and rising. They can’t hide that. just continue to pound them.
Not really, they are just looking for a quick market rally which will be baked in as soon as Powell even indicates in the slightest way the FED will lower rates - that will be enough for 3 months. They will also bank on retail sales increasing (totally seasonal back to school purchasing) as a glimmer of hope in Klammy.
Agree
Haven’t you heard, inflation is abating as per the MSM - that is the message to the crazy cat ladies.
If Harris gets elected, the spigot will remain open. If Trump gets elected, the spigot will be shut tight, and Trumponomics will be blamed for the ensuing recession and stock market crash.
As long as your mortgage interest is below the rate of inflation, you should continue to pay. Pure economic rationale.
I just locked 5.75 by purchasing half a point.
No brainer purchase.
Moving to Reno.
I am always amused when folks focus on economic statistics.
The average voter could not care less about published numbers.
All they know is what is happening in their household and maybe what is happening to friends and neighbors.
The old Reagan quote covered the topic precisely and totally:
“Are you better off than you were four years ago.”
All the rest is noise—and irritating noise at that.
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