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 ...
I agree. Also, remind people how much everything has increased. I would also target all of the scapegoats that are used during a large increase in inflation and tell them “they are blaming you for the terrible economy when they all know it is themselves!”
On a daily basis, I find myself wondering when the investment bank that holds the mortgage will call me up and beg me to prepay the mortgage at 50 cents on the dollar.
If rates plummet and the return falls below your mortgage rate, you can just sell the fund and pay off the mortgage then.
“...Voters, what changed?...”
Here’s a clue: 20 million illegal aliens pouring across the USA and the $8 trillion of fiat money printed out of thin air to support them (causing massive inflation and currency depreciation).
Mortgage rates ARE NOT DOWN.
Just checked.......
As long as your mortgage interest is below the rate of inflation, you should continue to pay. Pure economic rationale.
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Do you factor in the tax rate on interest income?
You should be able to get about a 5.25% return right now with minimal risk.
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But if my income tax, last dollar, is 30% how does that facor in?
Democrat election year!
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