Mortgage & Finance

Mortgage interest rates are in the news again. They went up to 8% and are now down closer to 7%. They will likely go down more in 2024. There are all sorts of predictions about what a wonderful year 2024 will be.

Next year is almost always predicted to be better than this year. Home sales have been down this year. I’ll have some numbers in a few weeks. As interest rates go down moving will be more attractive to homeowners.  Lower rates will also make housing more affordable. Some experts are predicting 6% interest rates by this time next year.

Is this a good time to buy a house? My answer is always the same. It depends upon your financial situation, where you want to move to, and if you plan on staying in the same area for at least five years. Timing is important.

Mortgage rates are high but not as high as they were a couple of weeks ago. They have gone down slightly. Current rates are not good news. These rates are just less bad.

Yes, it is true after going way up, mortgage interest rates have started to come down. The word “Recession” is appearing in the news again.

“Mortgage News Daily’s lender survey showed rates on 30-year fixed-rate mortgages falling 15 basis points Friday, to 7.36 percent, down 67 basis points from a 2023 high of 8.03 percent registered on Oct. 19.”

That is a significant drop but still much higher than low but also much better than way too high.

We have another record high for the last twenty years or so. Current rates are higher than they have been at any time in my 22-year career. Be very cautious. You might not be able to “date the rate” and “Marry the house” as some Realtors are suggesting.

Also, check out the mortgage amortization chart I published last week.

Yes, homeownership is important but if it is going to lead to poverty don’t do it.

Interest rate increases seem to be the only tool the Federal Reserve has for dealing with inflation. It doesn’t seem to be working.