While Victoria is in Bali, we are delighted to have our guest blogger, Adam Renken, with us this week. Adam is a loan consultant at Caliber and has worked with Victoria on several successful transactions. He also happens to be incredibly knowledgeable about the market and is here to provide a quick update.
Without further ado, take it away, Adam:
Mortgage rates will continue to improve after their peak in October 2023. Cooling inflation and a slowing labor market have the markets looking forward and assuming the FED rate hikes are complete.
The Federal Funds Futures market implies a 35% probability of a FED rate cut in March 2024 and a 69% likelihood of a rate cut at the May 2024 meeting. Mortgage rates, while off their highs, are currently sitting about 0.75% higher than one year ago.
The recent pullback has brought some buyers off the sidelines, but sales remain muted due to higher mortgage rates and tighter inventory. Despite higher interest rates, home inventory levels have not increased, and builders can’t keep pace with the growing economy.
If interest rates drop by 1%, homeowners save roughly $375 monthly on a $600,000 purchase. Remember, as interest rates continue to go down, more buyers will enter the market, and buyer incentives like concessions and buydowns will disappear. Dropping rates also means increased competition.
Don’t wait to start your search. Contact us today and get started before the holidays are over!
Happy house hunting!
- Kidz Bop concert- Looking for an early Christmas gift or surprise for the youngsters in the fam? This concert is selling out fast!
- Six: The Musical at Buell Theatre- This musical is one for the ages, with catchy songs and cool outfits that the whole family will love.
- A Colorado Christmas | Colorado Symphony- Listen to the elegant, warm sounds of the holiday season.
- The Nutcracker- If this isn’t already part of your holiday traditions, this year is the time to start!
- ANNUAL BEATLES SINGALONG- I think the title says it all. Beatles. Singalong. Yes!