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What’s The Latest With Mortgage Rates in Prescott Valley, Arizona?

What’s the Latest with Mortgage Rates?

Recent headlines may leave you wondering what’s next for mortgage rates. Maybe you’d previously heard there were going to be cuts this year that would bring rates down. That refers to the Federal Reserve (the Fed) and what they do to their Fed Funds Rate. While cutting, or lowering, the Fed Funds Rate doesn’t directly determine mortgage rates, it does tend to impact them. But when the Fed met last week, a cut didn’t happen — at least, not yet.

There are a lot of factors the Fed considered in their recent decision and most of them are complex. But you don’t need to be bogged down by those finer details. What you really want is the answer to this question: does that mean mortgage rates aren’t going to fall? Here’s what you need to know. 

Mortgage Rates Are Still Expected To Drop This Year

While it hasn’t happened yet, that doesn’t mean it won’t. Even Jerome Powell, the Chairman of the Fed, says they still plan to make cuts this year, assuming inflation cools:

“We believe that our policy rate is likely at its peak for this tightening cycle and that, if the economy evolves broadly as expected, it will likely be appropriate to begin dialing back policy restraint at some point this year.”

When this happens, history shows mortgage rates will likely follow. That means hope isn’t lost. As a recent article from Business Insider explains:

“As inflation comes down and the Fed is able to start lowering rates, mortgage rates should go down, too. . .”

What This Means for You

But you don’t necessarily want to wait for it to happen. Mortgage rates are notoriously hard to forecast. There are so many factors at play and any one of those can change the projections as the economy shifts. And it’s why the experts offer this advice. As Mark Fleming, Chief Economist at First American, says:

“Well, mortgage rate projections are just that, projections, not promises and don’t forget how hard it is to forecast them. . . So my advice is to never try to time the market . . . If one is financially prepared and buying a home aligns with your lifestyle goals, then it could be the right time to purchase. And there’s always the refinance option if mortgage rates are lower in the future.”

Basically, if you’re looking to move and trying to time the market, don’t. If you’re ready, willing, and able to move, it may still be worth it to do it now, especially if you can find the home you’ve been searching for.

Bottom Line

If you’re looking to buy a home, let’s connect so you have someone keeping you up-to-date on mortgage rates and helping you make the best decision possible.

Posted in: Mortgage Rates and Updates Tagged: Addington Realty Group, Arizona, Build Equity, California, Camarillo, Hedge Against Inflation, Home Affordability, home prices, Homeownership, Housing Market Update, Housing Market Updates, Inflation, Interest Rates, market trends, mortgage, Mortgage rate, mortgage rates, Mortgage Trends, Oxnard, Phoenix, Prescott, Prescott Valley, Pricing, Real Estate, Real Estate Broker, Real Estate Expert, Realtor, Scottsdale, Simi Valley, Things Realtors See, Thousand Oaks, Trusted Realtor, Ventura, Wealth Building

The Latest Trends In Housing in Prescott, Arizona [INFOGRAPHIC]

The Latest Trends in Housing [INFOGRAPHIC]

a close up of a chart

Some Highlights

  • With the number of new listings going up and average days on market going down, buyers may have more options, but will still want to move fast.
  • For sellers, inventory is still low and houses are selling fast, meaning your house should stand out and may get multiple offers if you price it right.
  • If you want to know more about what’s happening in our area, let’s connect.

Posted in: Infographics, Market Update, Seller Tips Tagged: Addington Realty Group, Arizona, Best Time to Sell, Build Equity, Building Equity, California, Camarillo, Good Time to Sell, Great Time to Sell, home selling, housing market, Housing Market Update, Housing Market Updates, Infographics, List Your House, Market Data, market knowledge, market trends, Oxnard, Phoenix, Prescott, Prescott Valley, Real Estate, Real Estate Broker, Real Estate Expert, Real Estate Market, Realtor, reasons to sell, Scottsdale, Sell Your House, Sellers Market, Selling Myths, Selling Potential, Selling Your House, Simi Valley, Spring Housing Market, Things Realtors See, Thousand Oaks, Trusted Realtor, Ventura, Wealth Building

The Spring Market Is a Sweet Spot if You’re Looking To Sell in Simi Valley, California [INFOGRAPHIC]

The Spring Market Is a Sweet Spot if You’re Looking To Sell [INFOGRAPHIC]

a screenshot of a phone

Some Highlights

  • Wondering if now’s a good time to sell your house? Based on how many homes are on the market, there are two big reasons why this spring is looking so good for sellers.
  • Thanks to an uptick in inventory over last year, you’ve got more options for your next home. But there are still fewer homes for sale than there’d normally be, meaning your house should stand out and get a lot of attention from buyers.
  • If you want to sell your house, this spring is the sweet spot. When you’re ready, let’s chat to get the ball rolling.

Posted in: Infographics, Seller Tips Tagged: Addington Realty Group, Arizona, Best Investment, Best Time to Sell, Build Equity, Buyer Traffic, California, Camarillo, demographics, Financial Independence, Financial Stability, First Time Home Buyers, Fixed Rates, Good Time to Sell, Great Time to Sell, Hedge Against Inflation, Home Affordability, home inventory, home investing, home prices, home selling, Homebuying, Homeownership, housing market, Housing Market Update, Infographics, Leverage Your Equity, List Your House, Loan Rates, Long-Term Investments, Low Inventory, market trends, Mortgage rate, mortgage rates, Oxnard, Phoenix, Prescott, Prescott Valley, Price Appreciation, Pricing, Purchase Price, Raise Your Family, Real Estate, Real Estate Expert, reasons to sell, Rent vs Buy, Right Price, Right Time To Sell, Scottsdale, Sell Your House, Sellers Market, Selling Myths, Selling Potential, Selling Your House, Simi Valley, Sweet Spot for Sellers, Thousand Oaks, Ventura, Wealth Building

Why There Won’t Be a Recession That Tanks the Housing Market in Prescott Valley, Arizona

Why There Won’t Be a Recession That Tanks the Housing Market

There’s been a lot of recession talk over the past couple of years. And that may leave you worried we’re headed for a repeat of what we saw back in 2008. Here’s a look at the latest expert projections to show you why that isn’t going to happen.

According to Jacob Channel, Senior Economist at LendingTree, the economy’s pretty strong:

“At least right now, the fundamentals of the economy, despite some hiccups, are doing pretty good. While things are far from perfect, the economy is probably doing better than people want to give it credit for.”

That might be why a recent survey from the Wall Street Journal shows only 39% of economists think there’ll be a recession in the next year. That’s way down from 61% projecting a recession just one year ago (see graph below):

a graph of the economic growth of the economy

Most experts believe there won’t be a recession in the next 12 months. One reason why is the current unemployment rate. Let’s compare where we are now with historical data from Macrotrends, the Bureau of Labor Statistics (BLS), and Trading Economics. When we do, it’s clear the unemployment rate today is still very low (see graph below):

a graph of a graph showing the number of employment rate

The orange bar shows the average unemployment rate since 1948 is about 5.7%. The red bar shows that right after the financial crisis in 2008, when the housing market crashed, the unemployment rate was up to 8.3%. Both of those numbers are much larger than the unemployment rate this January (shown in blue).

But will the unemployment rate go up? To answer that, look at the graph below. It uses data from that same Wall Street Journal survey to show what the experts are projecting for unemployment over the next three years compared to the long-term average (see graph below):

a graph of blue bars

As you can see, economists don’t expect the unemployment rate to even come close to the long-term average over the next three years – much less the 8.3% we saw when the market last crashed.

Still, if these projections are correct, there will be people who lose their jobs next year. Anytime someone’s out of work, that’s a tough situation, not just for the individual, but also for their friends and loved ones. But the big question is: will enough people lose their jobs to create a flood of foreclosures that could crash the housing market?

Looking ahead, projections show the unemployment rate will likely stay below the 75-year average. That means you shouldn’t expect a wave of foreclosures that would impact the housing market in a big way.

Bottom Line

Most experts now think we won’t have a recession in the next year. They also don’t expect a big jump in the unemployment rate. That means you don’t need to fear a flood of foreclosures that would cause the housing market to crash.

Posted in: Market Update, Mortgage Rates and Updates Tagged: Accessory Dwelling Unit, Addington Realty Group, Affordability, Affordable Entry Point, Arizona, Avoid Foreclosure, Build Equity, Building Equity, Buy a Home, buying myths, California, Camarillo, Downsizing, equity homeowner, First Step to Buying, First Time Home Buyers, For Sale by Owner, foreclosure, Foreclosures, Good Time to Buy, Good Time to Sell, Hedge Against Inflation, Home Affordability, Home Equity, home prices, Homebuyer, Homebuyers, Homebuying, Homeownership, homes for sale, housing market, Housing Market Update, Housing Market Updates, Inflation, Leverage Your Equity, Move-Up Home Buyers, Oxnard, Phoenix, Prescott, Prescott Valley, Price Appreciation, Pricing, Real Estate, Real Estate Expert, Rent vs Buy, Right Price, Scottsdale, Sell Your House, Sellers Market, Selling Myths, Selling Potential, Selling Your House, Simi Valley, Sweet Spot for Sellers, Thousand Oaks, Unlikely Flood of Foreclosures, Ventura, Wealth Building

Why We Aren’t Headed for a Housing Crash in Oxnard, California

Why We Aren’t Headed for a Housing Crash

If you’re holding out hope that the housing market is going to crash and bring home prices back down, here’s a look at what the data shows. And spoiler alert: that’s not in the cards. Instead, experts say home prices are going to keep going up.

Today’s market is very different than it was before the housing crash in 2008. Here’s why.

It’s Harder To Get a Loan Now – and That’s Actually a Good Thing

It was much easier to get a home loan during the lead-up to the 2008 housing crisis than it is today. Back then, banks had different lending standards, making it easy for just about anyone to qualify for a home loan or refinance an existing one.

Things are different today. Homebuyers face increasingly higher standards from mortgage companies. The graph below uses data from the Mortgage Bankers Association (MBA) to show this difference. The lower the number, the harder it is to get a mortgage. The higher the number, the easier it is:

a graph showing a line going up

The peak in the graph shows that, back then, lending standards weren’t as strict as they are now. That means lending institutions took on much greater risk in both the person and the mortgage products offered around the crash. That led to mass defaults and a flood of foreclosures coming onto the market.

There Are Far Fewer Homes for Sale Today, so Prices Won’t Crash

Because there were too many homes for sale during the housing crisis (many of which were short sales and foreclosures), that caused home prices to fall dramatically. But today, there’s an inventory shortage – not a surplus.

The graph below uses data from the National Association of Realtors (NAR) and the Federal Reserve to show how the months’ supply of homes available now (shown in blue) compares to the crash (shown in red):

a graph of a number of people

Today, unsold inventory sits at just a 3.0-months’ supply. That’s compared to the peak of 10.4 month’s supply back in 2008. That means there’s nowhere near enough inventory on the market for home prices to come crashing down like they did back then.

People Are Not Using Their Homes as ATMs Like They Did in the Early 2000s

Back in the lead up to the housing crash, many homeowners were borrowing against the equity in their homes to finance new cars, boats, and vacations. So, when prices started to fall, as inventory rose too high, many of those homeowners found themselves underwater.

But today, homeowners are a lot more cautious. Even though prices have skyrocketed in the past few years, homeowners aren’t tapping into their equity the way they did back then.

Black Knight reports that tappable equity (the amount of equity available for homeowners to access before hitting a maximum 80% loan-to-value ratio, or LTV) has actually reached an all-time high:

a graph of a growing graph

That means, as a whole, homeowners have more equity available than ever before. And that’s great. Homeowners are in a much stronger position today than in the early 2000s. That same report from Black Knight goes on to explain:

“Only 1.1% of mortgage holders (582K) ended the year underwater, down from 1.5% (807K) at this time last year.”

And since homeowners are on more solid footing today, they’ll have options to avoid foreclosure. That limits the number of distressed properties coming onto the market. And without a flood of inventory, prices won’t come tumbling down.

Bottom Line

While you may be hoping for something that brings prices down, that’s not what the data tells us is going to happen. The most current research clearly shows that today’s market is nothing like it was last time.

Posted in: Market Update, Mortgage Rates and Updates Tagged: 30-year Loan, Addington Realty Group, Arizona, Avoid Foreclosure, Baby Boomer, Best Time to Sell, Build Equity, Buy a Home, Buyers, buying myths, California, Camarillo, Down Payment, down payment assistance, Downsizing, FHA Loans, First Step to Buying, First Time Home Buyers, Good Time to Buy, Good Time to Sell, Great Time to Sell, Hedge Against Inflation, Home Affordability, Home Loans, home prices, home selling, Homebuyer, Homebuyers, Homebuying, Homeownership, Housing Bubble, housing market, Housing Market Update, Housing Market Updates, Housing shortage, Inflation, Interest Rates, Leverage Your Equity, Limited Housing Supply, List Your House, Loan Rates, Low Inventory, market trends, Mortgage Loan, Mortgage Loans, Mortgage rate, mortgage rates, Move-Up Buyers, Move-Up Home Buyers, multigenerational, Next Generation, Oxnard, Phoenix, Prescott, Prescott Valley, Price Appreciation, Pricing, Purchase, Purchase Price, Putting Down Roots, Raise Your Family, Rate Locked, Real Estate, Real Estate Expert, reasons to sell, Rent vs Buy, Right Price, Right Time To Sell, Scottsdale, Sell Your House, Sellers Market, Selling Myths, Selling Point, Selling Potential, Selling Your House, Simi Valley, Spring Housing Market, Thousand Oaks, Unlikely Flood of Foreclosures, USDA Loans, VA Loans, Ventura, Wealth Building

Why You Want an Agent’s Advice for Your Move in Camarillo, California

Why You Want an Agent’s Advice for Your Move

No matter how you slice it, buying or selling a home is a big decision. And when you’re going through any change in your life and you need some guidance, what do you do? You get advice from people who know what they’re talking about.

Moving is no exception. You need insights from the pros to help you feel confident in your decision. Freddie Mac explains it like this:

“As you set out to find the right home for your family, be sure to select experienced, trusted professionals who will help you make informed decisions and avoid pitfalls.”

And while perfect advice isn’t possible – not even from the experts, what you can get is the very best advice out there.

The Power of Expert Advice

For example, let’s say you need an attorney. You start off by finding an expert in the type of law required for your case. Once you do, they won’t immediately tell you how the case is going to end, or how the judge or jury will rule. But what a good attorney can do is walk you through the most effective strategies based on their experience and help you put a plan together. They’ll even use their knowledge to adjust that plan as new information becomes available.

The job of a real estate agent is similar. Just like you can’t find a lawyer to give you perfect advice, you won’t find a real estate professional who can either. That’s because it’s impossible to know everything that’s going to happen throughout your transaction. Their role is to give you the best advice they can.

To do that, an agent will draw on their experience, industry knowledge, and market data. They know the latest trends, the ins and outs of the homebuying and selling processes, and what’s worked for other people in the same situation as you.

With that expertise, a real estate advisor can anticipate what could happen next and work with you to put together a solid plan. Then, they’ll guide you through the process, helping you make decisions along the way. That’s the very definition of getting the best – not perfect – advice. And that’s the power of working with a real estate advisor.

Bottom Line

If you’re looking to buy or sell a home, you want an expert on your side to help you each step of the way. Let’s connect so you have advice you can count on.

Posted in: Buyer Tips, Realtor Daily, Seller Tips Tagged: Addington Realty Group, Arizona, Best Time to Sell, Build Equity, buy, Buy a Home, Buyers, buying myths, California, Camarillo, demographics, Downsizing, First Step to Buying, First Time Home Buyers, For Sale by Owner, Good Time to Buy, Good Time to Sell, Great Time to Sell, Hedge Against Inflation, Home Affordability, Home Sales, home selling, Homebuyer, Homebuyers, Homebuying, Homeownership, homes for sale, Housing Market Update, Inflation, Leverage Your Equity, List Your House, Low Inventory, market trends, mortgage rates, Move-Up Buyers, Move-Up Home Buyers, Oxnard, Phoenix, Prescott, Prescott Valley, Price Appreciation, Pricing, Purchase, Raise Your Family, Real Estate, Real Estate Broker, Real Estate Expert, reasons to sell, Rent vs Buy, Right Price, Right Time To Sell, Save Money, Scottsdale, Sell Your House, Sellers Market, Selling Myths, Selling Point, Selling Potential, Selling Your House, Simi Valley, Things Realtors See, Thousand Oaks, Trusted Realtor, Ventura, Wealth Building

WILL A SILVER TSUNAMI CHANGE THE 2024 HOUSING MARKET in Camarillo, California?

Will a Silver Tsunami Change the 2024 Housing Market?

Have you ever heard the term “Silver Tsunami” and wondered what it’s all about? If so, that might be because there’s been lot of talk about it online recently. Let’s dive into what it is and why it won’t drastically impact the housing market.

What Does Silver Tsunami Mean?

A recent article from HousingWire calls it:

“. . . a colloquialism referring to aging Americans changing their housing arrangements to accommodate aging . . .”

The thought is that as baby boomers grow older, a significant number will start downsizing their homes. Considering how large that generation is, if these moves happened in a big wave, it would affect the housing market by causing a significant uptick in the number of larger homes for sale. That influx of homes coming onto the market would impact the balance of supply and demand and more.

The concept makes sense in theory, but will it happen? And if so, when?

Why It Won’t Have a Huge Impact on the Housing Market in 2024

Experts say, so far, a silver tsunami hasn’t happened – and it probably won’t anytime soon. According to that same article from HousingWire:

“. . . the silver tsunami’s transformative potential for the U.S. housing market has not yet materialized in any meaningful way, and few expect it to anytime soon.”

Here’s just one reason why. Many baby boomers don’t want to move. Data from the AARP shows over half of the surveyed adults ages 65 and up plan to stay put and age in place in their current home rather than move (see chart below):

Clearly, not every baby boomer is planning to sell or move – and even those who do won’t do it all at once. Instead, it will be more gradual, happening slowly over time. As Mark Fleming, Chief Economist at First American, says:

“Demographics are never a tsunami. The baby boomer generation is almost two decades of births. That means they’re going to take about two decades to work their way through.”

Bottom Line

If you’re worried about a Silver Tsunami shaking up the housing market, don’t be. Any impact from baby boomers moving will be gradual over many years. Fleming sums it up best:

 

“Demographic trends, they don’t tsunami. They trickle.”

Posted in: Market Update Tagged: Addington Realty Group, Arizona, Baby Boomer, Build Equity, Buy a Home, buying myths, California, Camarillo, demographics, Downsizing, First Time Home Buyers, Good Time to Sell, Hedge Against Inflation, Home Affordability, home prices, home selling, Homebuyer, Homebuyers, Homebuying, Homeownership, housing market, Housing Market Update, Housing Market Updates, Inflation, Low Inventory, market trends, mortgage rates, Move-Up Home Buyers, Oxnard, Phoenix, Prescott, Prescott Valley, Price Appreciation, Real Estate, Real Estate Expert, Scottsdale, Sell Your House, Sellers Market, Selling Myths, Selling Potential, Selling Your House, Simi Valley, Thousand Oaks, Upgrade Your Home, Ventura, Wealth Building

How Changing Mortgage Rates Impact You in Phoenix, Arizona [INFOGRAPHIC]

How Changing Mortgage Rates Impact You [INFOGRAPHIC]

a house with many different colored numbers

Some Highlights

  • If you’re looking to buy a home, it’s important to know how mortgage rates impact what you can afford and how much you’ll pay each month.
  • That’s because even a small change in mortgage rates can have a big impact on your purchasing power.
  • The best way to navigate changing mortgage rates and make an informed buying decision is to rely on the expertise of a local real estate professional and mortgage lender.

Posted in: Infographics, Mortgage Rates and Updates Tagged: Addington Realty Group, Arizona, Best Time to Sell, Build Equity, Buy a Home, buying myths, California, Camarillo, Downsizing, First Step to Buying, First Time Home Buyers, Good Time to Buy, Good Time to Sell, Great Time to Sell, Hedge Against Inflation, Home Affordability, home prices, home selling, Homebuyer, Homebuyers, Homebuying, Homeownership, housing market, Housing Market Update, Housing Market Updates, Inflation, Infographics, Interest Rates, Leverage Your Equity, List Your House, Loan Rates, Low Inventory, market trends, mortgage rates, Move-Up Home Buyers, multigenerational, Next Generation, Oxnard, Phoenix, Prescott, Prescott Valley, Price Appreciation, Pricing, Purchase, Purchase Price, Raise Your Family, Real Estate, Real Estate Expert, reasons to sell, Rent vs Buy, Right Price, Right Time To Sell, Scottsdale, Sell Your House, Sellers Market, Selling Myths, Selling Point, Selling Potential, Selling Your House, Simi Valley, Thousand Oaks, Ventura, Wealth Building

Expert Home Price Forecasts for 2024 Revised Up in Prescott Valley, Arizona

Expert Home Price Forecasts for 2024 Revised Up

Over the past few months, experts have revised their 2024 home price forecasts based on the latest data and market signals, and they’re even more confident prices will rise, not fall.

So, let’s see exactly how experts’ thinking has shifted – and what’s caused the change.

2024 Home Price Forecasts: Then and Now

The chart below shows what seven expert organizations think will happen to home prices in 2024. It compares their first 2024 home price forecasts (made at the end of 2023) with their newest projections:

a blue and white graph with text

The middle column shows that, at first, these experts thought home prices would only go up a little this year. But if you look at the column on the right, you’ll see they’ve all updated their forecasts and now think prices will go up more than they originally thought. And some of the differences are major.

There are two big factors keeping such strong upward pressure on home prices. The first is how few homes are for sale right now. According to Business Insider:

“Low home inventory is a chronic problem in the US. This has generally kept home prices up . . .”

A lack of housing inventory has been pushing prices up for a long time now – and that’s not expected to change dramatically this year. But what has changed a bit is mortgage rates.

Late last year when most housing market experts were calling for home prices to rise only a little bit in 2024, mortgage rates were up and buyer demand was more moderate.

Now that rates have come down from their peak last October, and with further declines expected over the course of the year, buyer demand has picked up. That increase in demand, along with an ongoing lack of inventory, is what’s caused the experts to feel the upward pressure on prices will be stronger than they expected a couple months ago.

A Look Forward To Get Ahead of the Next Forecast Revisions

Real estate experts regularly revise their home price forecasts as the housing market shifts. It’s a normal part of their job that ensures their projections are always up-to-date and factor in the latest changes in the housing market.

That means they’ll continue to revise their projections as the housing market changes, just as they’ve always done. How those forecasts change next is anyone’s guess, but pay attention to mortgage rates.

If they trend down as the year goes on, as they’re expected to do, that could lead to more buyer demand and even higher home price forecasts.

Basically, it’s all about supply and demand. With supply still so limited, anything that causes demand to go up will likely cause prices to go up, too.

Bottom Line

At first, experts believed home prices would only go up a little this year. But now, they’ve changed their minds and forecast prices will grow even more than they originally thought. Let’s connect so you know what to expect with prices in our area.

Posted in: Market Update, Mortgage Rates and Updates Tagged: Addington Realty Group, Adjustable-Rate Mortgage, Arizona, Best Time to Sell, Build Equity, buy, Buy a Home, Buydowns, buying myths, California, Camarillo, Downsizing, First Time Home Buyers, Fixed Rates, Good Time to Sell, Great Time to Sell, Hedge Against Inflation, Home Affordability, home prices, home selling, Homebuyer, Homebuyers, Homebuying, Homeownership, housing market, Housing Market Update, Housing Market Updates, Inflation, Interest Rates, Leverage Your Equity, List Your House, market trends, mortgage rates, Move-Up Home Buyers, Next Generation, Oxnard, Phoenix, Pre-approval, Preapproval, Prescott, Prescott Valley, Price Appreciation, Pricing, problem solver, Purchase, Raise Your Family, Real Estate, Real Estate Expert, Rent vs Buy, Right Price, Right Time To Sell, Scottsdale, Sell Your House, Sellers Market, Selling Myths, Selling Potential, Selling Your House, Simi Valley, Spring Housing Market, Thousand Oaks, Unlikely Flood of Foreclosures, Ventura, Wealth Building

Some Experts Say Mortgage Rates May Fall Below 6% Later This Year in Prescott, Arizona

Some Experts Say Mortgage Rates May Fall Below 6% Later This Year

There’s a lot of confusion in the market about what’s happening with day-to-day movement in mortgage rates right now, but here’s what you really need to know: compared to the near 8% peak last fall, mortgage rates have trended down overall.

And if you’re looking to buy or sell a home, this is a big deal. While they’re going to continue to bounce around a bit based on various economic drivers (like inflation and reactions to the consumer price index, or CPI), don’t let the short-term volatility distract you. The experts agree the overarching downward trend should continue this year.

While we won’t see the record-low rates homebuyers got during the pandemic, some experts think we should see rates dip below 6% later this year. As Dean Baker, Senior Economist, Center for Economic Research, says:

“They will almost certainly not fall to pandemic lows, although we may soon see rates under 6.0 percent, which would be low by pre-Great Recession standards.”

And Baker isn’t the only one saying this is a possibility. The latest Fannie Mae projections also indicate we may see a rate below 6% by the end of this year (see the green box in the chart below):

a screenshot of a graph

The chart shows mortgage rate projections for 2024 from Fannie Mae. It includes the one that came out in December, and compares it to the updated 2024 forecast they released just one month later. And if you look closely, you’ll notice the projections are on the way down.

It’s normal for experts to re-forecast as they watch current market trends and the broader economy, but what this shows is experts are feeling confident rates should continue to decline, if inflation cools.

What This Means for You

But remember, no one can say for sure what will happen (and by when) – and short-term volatility is to be expected. So, don’t let small fluctuations scare you. Focus on the bigger picture.

If you’ve found a home you love in today’s market – especially where finding a home that meets your budget and your needs can be a challenge – it’s probably not a good idea to try to time the market and wait until rates drop below 6%.

With rates already lower than they were last fall, you have an opportunity in front of you right now. That’s because even a small quarter point dip in rates gives your purchasing power a boost.

Bottom Line

If you wanted to move last year but were holding off hoping rates would fall, now may be the time to act. Let’s connect to get the ball rolling.

Posted in: Market Update, Mortgage Rates and Updates Tagged: Addington Realty Group, Adjustable-Rate Mortgage, Arizona, Best Time to Sell, Build Equity, buy, Buy a Home, buying myths, California, Camarillo, Downsizing, First Step to Buying, First Time Home Buyers, Fixed Rates, Good Time to Buy, Good Time to Sell, Great Time to Sell, Hedge Against Inflation, Home Affordability, home prices, home selling, Homebuyer, Homebuyers, Homebuying, Homeownership, housing market, Housing Market Update, Housing Market Updates, Inflation, Interest Rates, List Your House, Loan Rates, market trends, Mortgage rate, mortgage rates, Move-Up Home Buyers, Oxnard, Phoenix, Prescott, Prescott Valley, Price Appreciation, Pricing, Purchase, Purchasing Power, Putting Down Roots, Raise Your Family, Rate Locked, Real Estate, Real Estate Expert, reasons to sell, Rent vs Buy, Right Price, Right Time To Sell, Scottsdale, Sell Your House, Sellers Market, Selling Myths, Selling Potential, Selling Your House, Simi Valley, Thousand Oaks, Ventura, Wealth Building

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Serving Southern California & Arizona
Mary Tan Addington CA DRE: 01918535|AZ DRE: BR700334000
Raymond Addington CA DRE: 01976687|AZ DRE: SA700523000
EXP Realty is an Equal Opportunity Employer and supports the Fair Housing Act

Addington Realty Group
Serving California & Arizona

805-419-0781