Im not sure “plunge” is perfectly descriptive for a 25 basis point change but it may indicate the peak of mortgage rates. That will be good for home prices if you own one as supply is still very tight (see housing supply at 2019 levels even with high rates). Most mortgages are still owned below 4%. Purchases rose over last week but are still well below LY. Mortgage rates plunge and demand finally inches back https://www.cnbc.com/2023/11/08/mor...are|com.apple.UIKit.activity.CopyToPasteboard Mortgage rates saw the biggest one-week drop in over a year last week, causing the first increase in mortgage demand in a month. Total mortgage application volume rose 2.5% last week, compared with the previous week, according to the Mortgage Bankers Association’s seasonally adjusted index. The average contract interest rate for 30-year fixed-rate mortgages with conforming loan balances ($726,200 or less) decreased to 7.61% from 7.86%, with points falling to 0.69 from 0.73 (including the origination fee) for loans with a 20% down payment. “Last week’s decrease in rates was driven by the U.S. Treasury’s issuance update, the Fed striking a dovish tone in the November FOMC statement, and data indicating a slower job market,” said Joel Kan, vice president and deputy chief economist at the MBA. Housing Inventory still below pre-covid levels Housing Inventory: Median Days on Market in the United States
So far the math says the board believes it will be between 5.55% and 6.55% this time next year. Fanny May predicting 6.67% Q4 next year. Will mortgage rates go down in 2024?
ohhh, I sure hope so. Closed on a rental 10/24 @ 8.1%.....day our rental ad went live, we had tenents in that night. Almost a pos cash flow at 8.1 (not that that really matters). Was actually kinda hoping to keep the riff raff away a while longer with "scary" rates, but I don't think my wife wants another property anyway.
