When Will Mortgage Rates go Down?

When will mortgage rates dip in 2024? It could be earlier than you anticipate. Last December 2023, J. Powell, the head of the Federal Reserve, announced the end of rate hikes. Looking ahead, we're anticipating at least three rate cuts starting around May. While the Feds rates don't exactly match mortgage rates, they definitely influence them.

So, why the shift towards lower rates, especially with inflation still above target? Powell believes that the heightened rates are no longer needed. It seems like the economy, along with corporate profits and banks, could use some relief. This, in turn, means consumers might see lower interest rates on things like homes, credit cards, and cars. Lowering mortgage rates isn't just about numbers; it's about reigniting the American dream of homeownership. This move could inject a fresh sense of pride among consumers, fostering growth in families and communities. Stay tuned as we delve into more stats and forecasts about this year's rates!

In this episode, you’ll learn:

• Distinction between the federal funds rate and mortgage interest rates
• How Federal funds rate influences emergency loans for banks and indirectly impacts consumer loans
• How mortgage rates are set
• A need to boost consumer confidence through lower rates
• Job cuts and the housing market's role in economic health
• A prediction on a downward trend in rates

Must-listen moments: 

[00:00:20] Discussion of the Federal Reserve's decision to stop raising rates and expected decreases in 2024.

[00:00:40] Clarification that the Federal Reserve's rate is different from mortgage interest rates.

[00:01:49] Explanation of the potential timeline for the Federal Reserve's rate reductions in 2024.

[00:02:30] Description of the federal funds rate and its historical context.

[00:03:00] Correlation between the 10-year Treasury yield and mortgage rates.

[00:03:30] Insight into how mortgage rates are determined daily by investors' sentiments.

[00:04:00] Discussion on the Federal Reserve's stance on inflation and interest rates in 2024.

[00:04:30] Analysis of the current economic situation and the need for rate reduction.

[00:05:00] The impact of interest rates on banks, credit cards, and car loans.

[00:05:29] The role of consumer confidence and the housing market in the economy.

[00:06:00] Overview of job cuts in major companies and the affordability gap in housing.

[00:07:00] Predictions for mortgage rates by the end of 2024.

Resources:

https://www.msn.com/en-us/money/markets/initial-us-employment-reports-overstated-by-439000-jobs-in-2023/ar-AA1mzhiu?ocid=socialshare

https://www.cbsnews.com/news/citi-layoffs-2024-20000-job-cuts-jane-fraser/

https://www.cnbc.com/2024/01/30/ups-reports-drop-in-package-volume-stock-tumbles.html

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📌More Helpful Content:
▶️The Myths and Truths About Credit Inquiries: https://youtu.be/d_RQJnTsVPE
▶️Why You Should Use A Local Lender: https://www.youtube.com/watch?v=shkijZmEonA ▶️How to Buy A House With Low Income: https://www.youtube.com/watch?v=OcyjWe0snWU
▶️Using Rental Income To Qualify For A Mortgage: https://www.youtube.com/watch?v=kv0eXzl1YUo

To contact us visit www.loanwithjen.com

 
Equal Housing Opportunity Lender NMLS# 514497

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