Ride the Rates
Are you in search of the most favorable interest rates? It’s worth noting that rates have been steadily climbing, although they appear to have reached a temporary peak. The Consumer Price Index (CPI) for November, released on December 12th, showed a rate of 3.14%, slightly lower than the previous month’s 3.24%. The key question is whether the Federal Reserve will continue to raise rates or if we have reached a plateau.
Will mortgage rates see a decline? Not in the immediate future. On March 15th, 2020, the Federal Reserve made a significant move by reducing their rate from 2.25% to a mere quarter-point (0.25%). Prior to the COVID-19 pandemic, 30-year fixed-rate conventional mortgages typically fell within the range of 3.5% to 4.0%. However, as of now, we have witnessed a substantial increase, with rates peaking at over 6.5%. This translates to a rise of approximately 3% across the board, following the rate hikes of 2023. FHA and VA 30-year rates, which were already as low as 2.25%, have also surged, now reaching over 5.5%.
Initially, the Federal Reserve communicated their intention to keep rates unchanged until 2023. Later, they clarified that they would only consider raising rates once the economy demonstrated a 2% or higher inflation rate. Currently, experts hold varying opinions on the pace at which rates will decrease.
On December 13th, 2023, the Federal Reserve announced that they would not implement any further rate increases in 2023. They projected a reduction in rates in 2024, but did not specify the timing or magnitude of these decreases. Some estimates suggest there could be between 4 and 6 rate reductions in 2024, with some experts anticipating the first reduction as early as March 2024. However, there are also those who believe that rates may begin to decline later in the year.
You can compare several lenders and lock at today’s best rate, or “Ride the Rates” and lock when the industry’s rates have a down day. Shop smart, not hard! Shop the industry, not individual lenders.
To receive daily rate updates, akin to the example below, displaying rates from February 2020 up to the present, please reach out to us via email at info@ilovemylender.com.
NOTE: New to this list? Your rate will likely be different from the generic one below. If you have submitted an application and initial documents, you are able to lock an interest rate. Have us price your loan so you can see how your scenario differs. These rates are a guideline showing how overall mortgage rates are changing, so you know when to price and lock your loan.
