Good news for Boston condo mortgage rates
Good news for Boston condo mortgage rates
There’s a lot of confusion in the Boston condo for sale market about what’s happening with day-to-day movement in mortgage rates right now, but here’s what you really need to know: compared to the near 8% peak last fall, mortgage rates have trended down overall.
And if you’re looking to buy or sell a home, this is a big deal. While they’re going to continue to bounce around a bit based on various economic drivers (like inflation and reactions to the consumer price index, or CPI), don’t let the short-term volatility distract you. The experts agree the overarching downward trend should continue this year.
While we won’t see the record-low rates homebuyers got during the pandemic, some experts think we should see rates dip below 6% later this year. As Dean Baker, Senior Economist, Center for Economic Research, says:
“They will almost certainly not fall to pandemic lows, although we may soon see rates under 6.0 percent, which would be low by pre-Great Recession standards.”
And Baker isn’t the only one saying this is a possibility. The latest Fannie Mae projections also indicate we may see a rate below 6% by the end of this year (see the green box in the chart below):
The chart shows mortgage rate projections for 2024 from Fannie Mae. It includes the one that came out in December, and compares it to the updated 2024 forecast they released just one month later. And if you look closely, you’ll notice the projections are on the way down.
It’s normal for experts to re-forecast as they watch current market trends and the broader economy, but what this shows is experts are feeling confident rates should continue to decline, if inflation cools.
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What This Means for You
But remember, no one can say for sure what will happen (and by when) – and short-term volatility is to be expected. So, don’t let small fluctuations scare you. Focus on the bigger picture.
If you’ve found a home you love in today’s market – especially where finding a home that meets your budget and your needs can be a challenge – it’s probably not a good idea to try to time the market and wait until rates drop below 6%.
With rates already lower than they were last fall, you have an opportunity in front of you right now. That’s because even a small quarter point dip in rates gives your purchasing power a boost.
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If you wanted to move last year but were holding off hoping rates would fall, now may be the time to act. Let’s connect to get the ball rolling.
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Good news for Boston condo mortgage rates
With another rate drop, the 30-year mortgage average has fallen to its lowest level since early August, plunging to 7.44%. Though many other loan averages moved down as well, several remained flat and refi averages included multiple increases.
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Good news for Boston condo mortgage rates
Mortgage rates over 7% but going in the right direction, thank God.
Yes, Boston condo mortgage interest rates are still ridiculously high but they are going in the right direction. When I purchased my first Boston condo for sale, I had to pay 8%, or 9% or more doesn’t mean 7.29% is a deal. Homes are proportionally more expensive today than they were in the 1980s. Houses have gone up by 310% since 1980. Wages have gone up about 17.5% since 1980.
If a lender or a real estate agent suggests that home buyers are dating the mortgage but marrying the house just walk away. It costs money to refinance and if housing prices level out or go down home buyers wishing to refinance may find themselves with no equity, or worse
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Good news for Boston condo mortgage rates
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Good news for Boston condo mortgage rates
Mortgage rates held steady last week, leaving room for homebuyers and those looking to refinance to get in while the getting is relatively good.
Purchase and refinance applications both reached five-week highs last week after mortgage rates held steady from the previous week, according to a report from the Mortgage Bankers Association.
The seasonally adjusted purchase index increased 3 percent from the previous week as buyers tried taking advantage of the mortgage rate easing. Purchase applications were down modestly on an unadjusted basis from the previous week, but up 12 percent year-over-year.
The weeks mortgage rates have spent at 7.61 percent have marked a relative reprieve for buyers and refinancers after rates hovered around 8 percent earlier this fall.
That would be great news for buyers sidelined by high mortgage rates and a housing market grappling with high prices and low inventory.
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Good news for Boston condo mortgage rates
Mortgage rates improving 0.24% in one day is extremely unusual!
In a matter of 48 hours, Silicon Valley Bank has gone from being a company that we’ve never heard about or discussed to the highest profile bank failure since the Great Financial Crisis.
Such developments sound like they should be good for bonds and today was no exception. The news certainly overshadowed today’s jobs report although traders also looked willing to take that in stride (higher headline job creation offset by lower wage growth and higher unemployment).
The net effect was the largest rally in 4 months and one of the 5 biggest rallies of the past decade–at least for Treasuries.
https://www.mortgagenewsdaily.com/markets/mbs-recap-03102023
