Market Update 2023-2024
Inflation:
The recent CPI (Consumer Index Report) exhibits a notable decline to 3.2% from its previous standing at 3.7%, a significant improvement considering its prior range of 8 to 9%. This marks a substantial stride towards the Federal Reserve's target of 2%, signaling positive developments in addressing inflation concerns.
Mortgage Rates:
In the most recent Federal Reserve meetings, the decision was made to maintain current interest rates holding off on an additional increase for the remainder of 2023, a choice influenced significantly by the latest Consumer Price Index (CPI) and Producer Price Index (PPI) reports. Notably, mortgage rates, which had recently peaked at 8%, have now retreated to the mid-7s and, at times, the low 7s for Conventional Mortgage Loans, representing a favorable shift in the mortgage market. Looking ahead there is a 100% likelihood that the Federal Reserve will decrease rates between May and June of 2024, with analysts anticipating a total of at least “ four” rate reductions by December 2024—collectively presenting positive and promising developments.
What does this mean for Buyers and Sellers?
For sellers, the anticipated decrease in interest rates signals a favorable outlook with an expected rise in home prices in 2024, presenting an excellent opportunity to prepare now for prospective gains in the months to come. Buyers, securing a loan qualification now positions you to avoid the buyer rush and intense competition during potential increases in home prices to come, while my preferred lender stands ready to facilitate interest rate refinancing for you when rates do decrease. Let's proactively gear up together for the promising opportunities that 2024 is positioning to offer.
