Navigating Rate Changes 2024: What You Need to Know

Did you hear the latest? In its most recent meeting, the Federal Reserve Board cut policy rates by 0.50%. According to Chair Jerome Powell, we may see further cuts this year, though future decisions will depend on economic data.

But if you’re considering buying a home, what does this all mean for you? Here’s a closer look at what you need to know: 

What did the Federal Reserve Board say?

The Board noted that both the job market and inflation are cooling. They aim to boost private sector spending without causing inflation to rise again. While Powell expects more rate cuts, timing depends on continued economic changes.

Will mortgage rates drop?

While the Federal Reserve Board doesn’t directly set mortgage rates, their decisions can influence future market trends. Mortgage rates have already fallen to yearly lows in anticipation of the Board moves. While too early to predict where rates will go, this is an opportunity to explore your options.

Should you wait or make a move?

Before making a decision, consider these four factors:

1. Lower rates may be available now: You might secure a great rate even before the Fed acts again.
2. Higher competition: More buyers may enter the market with lower rates, increasing competition for the limited supply of homes.
3. Build equity now: Purchasing now means the opportunity to build your equity.
4. Pre-approval puts you in the lead: A pre-approval, especially through our HUNT Mortgage Pre-Purchase Commitment Program, can give you a competitive advantage. This program offers a fully underwritten pre-approval, subject only to collateral conditions, putting you in a strong position when you’re ready to buy.

Now is a great time to prepare. Connect with one of our experienced Mortgage Consultants today to discuss your options, so you’re ready to act when the time is right.