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Is the recent low mortgage rate euphoria about to come to an end ???? Following what seems like months of sustained rate improvements from U.K lenders, recent events have the potential to bring an unwelcomed change. Coventry Building Society are the first major mainstream lender to announce a re-price. New rates will come into effect on Friday 11th, and could be a pre-cursor for more big names to follow. £ swaps have jumped substantially higher in the last 3 trading days. The 2-year rate now sits above 4%, from under 3.84% a week before. The 5-year also increased to around 3.80%, from 3.54% the previous week. If this sentiment remains the same, there is a high chance that the majority will need to reprice, and this will be upwards. As the current tranche of cheaper money quickly runs out, lenders will be forced to pay more, and this increased cost will be duly passed on, to the borrower. 4 factors that have the potential to push borrowing costs higher. 1 Fridays U.S employment data showed recession is less likely, removing the need for larger interest rate cuts. 2 BOE economist Huw Pill warned against cutting rates 'too far, too quickly'. 3 Fears of a Middle East escalation continue, forcing oil prices higher. 4 U.K budget looms, with potential for increased Government borrowing. If you are currently pondering products my advice would be, sooner rather than later. Low rates don't last forever! ** If you want to discuss your mortgage, please get in touch ** Call 01708 535 946 or email iansmith@claritywm.co.uk #mortgagebroker #mortgage #interestrates #property #firsttimehomebuyers #remortgage #ltv #inflation #bankofengland #mpc #boe

The Fed just cut interest rates by 50bps, but what does that mean for your finances? 💡 While credit card rates might see a slight dip, don’t expect major changes. At 8%, the prime rate is still high. Be cautious with your spending and manage credit wisely! 📉💳 And the housing market is feeling some relief after the Fed’s rate cut! 🏡 Mortgage rates have dropped from 7.9% to 6.15%, making home ownership a bit more affordable. A $415K mortgage now costs nearly $500 less per month. Will this revive the housing market? 🏠📉 Read the latest for more detail on the market insights and subscribe so you don't miss the latest! https://hubs.la/Q02QPg2g0 #InterestRates #FedCut #CreditCardDebt #Inflation #MoneyMatters #PersonalFinance #DebtRelief #SmartSpending #Economy #FinanceNews #RateCut #PrimeRate #FinancialPlanning #ConsumerDebt #InterestRates #WealthManagement

The Reserve Bank has kept the cash rate at 4.35%, but mortgage pressures continue to mount. Despite stable housing prices and competitive lending rates, mortgage arrears are rising, now at 1.6%. Experts predict that with ongoing high inflation and a potentially loosening labor market, arrears may increase further. Economists foresee a possible rate cut by March next year, though the exact timing remains uncertain. It's crucial for borrowers to stay informed and explore their options in this challenging financial landscape. https://lnkd.in/gDJFyEha CoreLogic Australia #corelogic #RBA #brokernews #mortgage #brokers

Breaking News:  Today, the Federal Reserve decided to leave its benchmark interest rate unchanged, maintaining the current range of 5.25% to 5.5%. While this decision may not directly impact mortgage rates, it’s still good news for borrowers. Here’s why: 1. Stability: By keeping rates steady, the Fed provides stability for financial markets and lenders. Borrowers can expect consistent mortgage rates, which is essential for planning and budgeting. 2. Predictability: Homebuyers and homeowners benefit from knowing that their mortgage rates won’t suddenly spike due to a rate hike. Predictability encourages confidence in the housing market. 3. Affordability: Unchanged rates mean that existing homeowners with adjustable-rate mortgages won’t face higher monthly payments. This affordability factor supports housing demand. 4. Rate Cut Hints: The Fed hinted at possible rate cuts in the future, possibly as early as September. If inflation continues to moderate, these cuts could further improve mortgage affordability. 5. Economic Outlook: The decision reflects the Fed’s assessment of the broader economy. While inflation remains elevated, the central bank’s cautious approach aims to balance growth and stability. Overall, the Fed’s decision today provides a favorable environment for mortgage borrowers, promoting stability and predictability in the housing market. 🏠📉

🚨 Historic Interest Rate Drop! 🚨 Attention, investment real estate owners and landlords! The Federal Reserve is signaling a potential rate cut in September, causing U.S. mortgage rates to plunge to a five-month low! 📉 Current 30-year mortgage rate: 6.73% (lowest since early February) DSCR loan rates are sub 6% Now is the perfect time to refinance and save big on your mortgage payments. Don't miss this opportunity to lock in lower rates! Key Highlights: The economy is showing signs of slowing, leading to potential further rate cuts. The Federal Reserve's actions have resulted in significant progress in controlling inflation. The consumer-price index and labor market strength are crucial indicators for future rate movements. 📞 Contact Gregg Kennedy at CIVIC to refinance your mortgages today! Reach out now and secure your financial future with lower rates. Gregg Kennedy 📧 gregg.kennedy@civisfs.com 📱 732-543-7735 Take advantage of this rate drop and let CIVIC help you optimize your investment! 🏡💼 #MortgageRates #RealEstateInvestment #Refinance #InterestRates #CIVIC

Exciting developments in the housing market! 🏡 The Federal Reserve's latest announcement could impact your home buying journey. Now, more than ever, having the right support is crucial. Whether you're looking to buy your first home, upgrade, or invest, I'm here to guide you every step of the way. Let's make your homeownership dreams a reality! Feel free to reach out for any real estate needs. Together, we can navigate this dynamic market. #RealEstate #HomeBuying #Realtor #HousingMarket #FederalReserve #HomeOwnership #PropertyInvestment

🔴 Have economists labeled September as the potential month for the first rate cut by the Fed Chair Jerome Powell? If so, how could this impact mortgage rates? 🔴 The uncertainty surrounding when the rate cut will take place creates speculation and anticipation among experts in the financial industry. 🔴 If the rate cut does occur in September, it could lead to a decreased cost of borrowing, potentially making it a favorable time for individuals looking to purchase or refinance a home. 🔴 Homeowners with adjustable-rate mortgages may find relief in lower interest rates if the Fed implements a cut in September. 🔴 The potential rate cut could also encourage more people to enter the housing market, driving up demand for homes. 🔴 However, on the flip side, investors may adjust their strategies in response to the rate cut, leading to potential fluctuations in the housing market. 🔴 While the exact impact of the rate cut on mortgage rates remains to be seen, it's crucial for individuals in the real estate market to stay informed and prepared for any changes that may occur.

📊 Fed Rate vs. Mortgage Rate: What’s the Difference? 🏡💸 Ever wonder how the Federal Reserve rate and mortgage rates are connected? 🤔 Here’s a quick breakdown: 🔹 Fed Rate: The interest rate set by the Federal Reserve, impacting how banks lend to each other. It’s used to control inflation and stabilize the economy. 🔹 Mortgage Rate: The rate you pay on your home loan. While influenced by the Fed rate, mortgage rates are also affected by the bond market, inflation, and your credit score. ⚖️ Key Difference: The Fed rate influences short-term rates like credit cards and loans, while mortgage rates respond to long-term factors like economic growth and demand for housing. When the Fed adjusts its rate, mortgage rates may follow, but it’s not always immediate or equal. Stay informed to make the best decisions for your home-buying journey! 🏡✨ #RealEstateTips #MortgageRates #FedRate #HomeBuying #Finance101

FOCUS ON HOUSING: The MBA reports that conforming mortgage rates dropped to 6.55% in the week to August 2, down from a high of 7.9% in October last year and back to May 23 levels. 10 year Treasury yields have bounced from their recent lows, but remain below levels that underpinned last week's mortgage rates so unless yields rise a lot more, mortgage rates can fall further. Lower mortgage rates will take some time to stimulate housing transactions so they won't stop the summer stall quickly. But they should begin stimulating activity going into late Q4 and early Q1 despite negative winter seasonality for housing. And if the Fed sticks with the plan of beginning rate cuts in September, which seems awfully likely, then Treasury yields can fall a bit more. I doubt a lot because of the need for larger term premia (and so think more about curve steepening than duration plays). Nonetheless, a 30 year rate of 6.2% in the next 6 months seems possible if not likely to me. That should stop the stall by early next year. #Fed #economy #housing #mortgagerates #Treasury

What’s Ahead For Mortgage Rates This Week – September 3rd, 2024: With the PCE Index data coming in as exactly as expected and the Federal Reserve signaling a strong potential for a rate cut, there is much optimism we will be seeing a rate cut this year if not the start of the next year. Among the PCE inflation data reports were the GDP initial figures, which projected the economy has grown faster than expected. Additionally, Personal Income data has also grown faster than expected. Both are very positive signs with inflation finally showing signs of flagging after in part due to the Federal Reserve's aggressive monetary policy. The post What’s Ahead For Mortgage Rates This Week – September 3rd, 2024 first appeared on Zach Huhn – VA Mortgage Corp. http://dlvr.it/TCpQnv