MARKET UPDATE: Rates Trend Downward

Rates have moved down steadily. New conventional loan limits were announced at $766,550. (We’d talk more about it - but it’s honestly boring.)

ANALYSIS

The market thinks we’ve hit the top of rates. That much is clear. It has reacted by dropping rates from 8% to approximately 7.375% in just a few weeks.

Everyone is now betting on the Fed cutting rates at least a few times next year. While it is wonderful to see rates drop, a bit of caution is warranted.

Indeed, when a Fed governor came out yesterday and said, “not even thinking about cutting” and oil producing companies committed to drilling less oil – even those minor announcements bumped up rates a bit.

WHAT’S NEXT

We’re headed in the right direction – and YES, we also believe we’ve hit the top of rates for this economic cycle. But we expect extreme volatility to continue for the time being.

Also, we've talked with multiple buyers this week who were ALL worried they would miss the boat and land in a hyper-competitive market in the spring. The New Year will be interesting…never bet against the U.S. housing market long-term!