If you're considering buying or selling a home, you're probably keeping an eye on mortgage rates. These rates play a major role in determining your monthly payments, and it's important to factor them into your decision-making process. Here's what you should know.
What’s Happening with Mortgage Rates?
Mortgage rates have been trending downward recently, which is great news for buyers. However, it's important to remember that rates can fluctuate due to several factors, such as the overall economy, the job market, inflation, and the Federal Reserve's actions.
As Odeta Kushi, Deputy Chief Economist at First American, explains:
“With inflation slowing and potential Federal Reserve rate cuts expected in 2024, mortgage rates could continue to drop. However, the path to lower rates may be gradual and unpredictable.”
How Do Mortgage Rate Changes Impact You?
Even slight changes in mortgage rates can significantly affect your monthly mortgage payment. For example, a small increase or decrease in rates could shift your monthly payments by hundreds of dollars, influencing your budget and purchasing power.
Keeping Track of Rates
Staying informed about mortgage rate trends is important, and working with a knowledgeable real estate agent is key. Agents can help you understand how rates impact your home search and provide you with insights and tools to make smart financial decisions.
Bottom Line
Navigating the housing market and mortgage rates can be challenging. Whether you’re buying or selling, connect with a trusted real estate professional who can guide you through the process and help you make informed choices based on the latest market conditions.
