Blog posted On January 02, 2024
Mortgage rates ended 2023 trending slightly higher than they were at the beginning of the year. It was an eventful year filled with rate volatility. Luckily, December rounded out the year with several weeks of lower-trending rates. More specifically, in mid-December, rates had one of the biggest 2-day drops in decades, followed by weeks of uncanny absence of volatility. The cause was the Federal Reserve’s announcement, which coincided with the release of the outlook for the Fed Funds rate. The outlook – depicted by a rate dot plot – was very friendly, making rates very happy. So what’s to come in 2024?
Rates to continue trending lower
The Federal Reserve has seemingly changed its tune towards rates. Though it had previously led the markets to believe that rates would likely be higher for longer, it’s starting to show signs that rates could go lower, quicker. There has even been talk of potential rate cuts in the new year. All in all, it’s been a fantastic month for those who are fans of lower mortgage rates. Mortgage application submissions agree, with weeks of consecutive increases – which is a huge shift from earlier this year. More good news came with housing starts, which surged nearly 15% month-over-month in November, and existing home sales, which were higher than expected in November as well.
Housing market to heat up
With lower-trending rates, it’s expected that home sales will start to heat up. More interested buyers and more competition could be in store. Many buyers have been ‘waiting it out’ for rates to fall, and a lot of them will see this year as a chance to jump.
What to do next
If you’re one of those interested buyers, it’s a good idea to get started now. By getting preapproved you can have everything you need to go confidently into the market – a set budget of how much you can afford, a lender’s backing, and more.
Get started today!