Mortgage Rates Expected to Ease!
Last week the Fed raised the federal funds rate 25 bps instead of 50 bps, and mortgage rates continued to improve. It’s likely the Fed eases their aggressive rate hikes and many expect rates to drop into the 5% range by Q4.The recent rate drop saves a $500k buyer over $300/mo. This opens a window of opportunity for buyers who were sidelined by affordability concerns.
- Multiple offers are in full effect in many markets and buyers need to understand the driving factor: lack of inventory. The single family home sector is very low right now due to the “lock in effect”, and it doesn’t look to be improving anytime soon.