October 5, 2023 - Toni's Market Forecast
Latest News ⛈️
Yesterday, the market responded to a better-than-expected job openings report so national average rates* are sitting at the 7.75% range for a 30 year fixed mortgage for Conventional and Jumbo purchase money. There are slightly lower rates for FHA and VA. (*via freddiemac.com/pmms)
Every 2 weeks - we're talking about what is happening in the news, with rates and more. We explain the complexities of the mortgage industry in ways that are easy to understand.
A Little Background 🏛️
Interest Rates are dependent on the economy and inflation. The Federal Reserve monitors various factors with the primary goal to reduce inflation. The Federal Open Market Committee (FOMC) met September 19-20, and for a change, they did NOT raise benchmark interest rates. This is only the second time that there has been NO rate hike since March 2022. For now, the benchmark short-term rate remains at a 22-year high of 5.25% to 5.5%.
On the Horizon ☔
The Fed’s next meeting is October 31 to November 1, 2023, and they will meet again in mid-December.
The Federal Reserve chair, Jerome Powell, has suggested there will be ONE more rate hike in 2023. However, some economists expect the Fed to hold steady at the current rate, given that the job market and inflation numbers appear to be improving. Let’s cross our fingers for this 🤞
My Forecast 🌡️
Remember what goes up will come down – 2024 will bring us the answer as to how low. So, instead of focusing on the doom and gloom – let’s look for the silver lining to move forward… 🌥️
🏡 If you want to purchase a home...
If you want to purchase a home – Don’t give up! There are several programs currently available for as little as 3% down payment. Many are priced for a half % lower than the going rates. You do not need to be a first-time homebuyer or have a low income to qualify! Let’s chat! ☎️
💳 If you currently own a home...
If you currently own a home but are struggling with the higher credit card debt payments as well as higher gas prices at the pump, we should chat and run the numbers as to whether a refinance at 8% would keep your monthly debt manageable and save you $$ in payments. Remember, you can refinance when rates come down. Continuing to get into more debt just to preserve a low mortgage rate may not be as financially smart as you think. Let’s chat! ☎️
And of course, you can always ask me questions at - Toni (at) toniryan.com
ABOUT THE AUTHOR
Toni F. Ryan | NMLS#230507
Senior Loan Officer | Pinnacle Home Loans
Toni F. Ryan has over 25 years experience in mortgage lending - both on the wholesale and retail levels. She believes that education is key to making the best decision for YOU! She shares her insight into the lending world here and encourages your feedback. Don't forget to connect on Facebook - Instagram and TikTok