Are Mortgage Rates Dropping?? Yes! And what it might mean for you.

It's getting scary out there in the stock market, and what does economic insecurity usually mean for mortgage rates? They go down.

Bad news for the market overall, but good news for anyone trying to buy a home. Especially folks like first time homebuyers who can't hack it in the higher rate environment because they're not walking into it with a chunk of equity to utilize in a purchase - unlike move up buyers.

Fed Rates and Market Predictions

Some experts have been shouting that the Fed should have cut been making minor rate cuts this year (like they promised). Although they didn’t, it’s evident they should have. Talks now suggest a 0.75% emergency cut. An emergency cut would really stress investors into the bond market (mortgage rates drop) and the fed rate would drop (mortgage rates drop). The fed has been promising a Fed Rate cut in September, and that seems likely. (Unlike the other cuts that have been promised and cancelled this year). I believe we’ll see mid-5% mortgage rates in the next 12 months.

Advice for Homebuyers

🔮 If you're looking to purchase in the next few years, the next 6 months may be the BEST window of time to buy we see for a LONG time.

1. Market Dynamics: What I love about real estate is it's a true market, meaning in the economic term way. And what happens in markets when demand is high and inventory is low? Prices go UP.
2. LOW Inventory: The lack of inventory in Denver is not changing and the city remains popular. So as we see the barrier to home buying lower as rates lower, prices WILL GO UP.
3. Withheld Demand: Since Rates have been high for the past 2.5 years, there are a lot of buyers who are waiting on the sidelines. What happens when the talk around rates becomes more positive and all those people decide to re-enter the housing market? We're going to see the bidding wars of 2021 and Spring 2022 😅

The next 6 months may be the best time we see in a LONG time to buy a home - rates have lowered and hopefully will lower further.

One more time for the people in the back...The next 6 months may be the best time we see in a LONG time to buy a home - rates have lowered and hopefully will lower further. AND the season shifting into the Fall and Winter allows for great deals, as it does every year.

Where is this coming from? Last Week’s Market Highlights

Fed Holds Rates Steady: After eleven hikes since March 2022, the Fed left rates unchanged at 5.25%-5.5%. With cooling inflation and a slowing job market, a rate cut in September is LIKELY.

July Jobs Report: Only 114,000 jobs were created, below the 175,000 estimates. The unemployment rate rose to 4.3%, indicating economic weaknesses.

Labor Market Weakness: Job openings fell to 8.184 million in June, down from a peak of 12 million in 2022. Unemployment claims rose to the highest levels of the year.

This is a LOT of info. Want to unpack it with me over the phone? DM me!

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