Anticipation is growing for two, or perhaps even three, Fed rate cuts before the end of this year. Here’s what you need to know if you’re in the market for a home purchase:
The Federal Reserve Board of Governors (Fed) does not directly control mortgage rates. However, as expectations for rate cuts increase, mortgage rates can fall in advance of Fed actions. While home listings are increasing, pent-up demand is waiting on lower rates. Lower rates will increase affordability, but competition can drive up prices and diminish the benefit.
To make informed decisions, consider the following:
- Obtain or update your pre-approval and keep your documents in order.
- Be ready to act quickly when you find the house that’s right for you.
- Consider purchasing a home at today’s prices, then locking in at a better rate if they fall before closing to preempt the rush.
- Keep in mind that it’s difficult to perfectly time any market, including housing.
If you’re comfortable with a current payment, it may be beneficial to make a move before competition from other buyers heats up. This can give you more time to consider available homes and greater confidence in your decisions.
Reach out to Andy at 314-221-7797 as soon as you’re ready or whenever you have questions. He will be happy to assist.
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Andy Schoemehl | Vice President |
