Where Will Rates Close in 2024?????

 

As another year races by, what will the markets be watching as we bring 2024 to a close?

Let's take a look. Inflation pressures have somewhat eased, but one metric, the Core Consumer Price Index year over year, remains stubbornly sticky at 3.3%. The core rate strips out volatile food and energy. The headline Consumer Price Index hit a 40-year high of 9.1% year over year in June of 2022 but has fallen to 2.6%. The rate of inflation has declined, but prices are still rising.

Borrowing costs fell from multi-year highs in September but have pushed above those lows and look to remain near current levels for the remainder of the year and into early next year. The 30-year fixed-rate mortgage is currently just below the 7% level, as would-be home buyers try to hold off on one of their biggest investments as they seek a lower monthly cost.

The Federal Reserve will hold its Federal Open Market Committee meeting on December 17th-18th, where it is expected it will cut the short-term Fed Funds Rate by 0.25%. This is despite Fed members saying the economy is strong and the job market remains solid. But don't get too excited; a Fed Rate cut doesn't equal lower borrowing costs. At the time of the Fed Rate cut of 0.50% on September 18th, the 30-year fixed rate was just above 6% and has since climbed to 6.81%.

Over in the stock markets, investors will be looking for the Santa Claus rally, which is the sustained increase in the stock market that occurs around the Christmas holiday on December 25th. Most estimate these rallies happen in the week leading up to the Christmas holiday, while others see trends that begin on Christmas Day through January 2nd. The closely watched S&P 500 stock index is currently near an all-time record high.

Bottom line: Stocks, bonds, interest rates, borrowing costs, inflation, home buying ... and along with everyday life, so much for the American consumer to juggle. For those in the quest for homeownership, we know that there are many hurdles to jump, but they are easier when you know you can achieve the American Dream.

Source: Mortgage Market Guide

Team Lasson is here for all of your home buying needs!  If you’re thinking about making the leap into home ownership in the near future, please contact us today to get started.  We can help you determine what loan program works best for your financial goals.  The first step in preparing for your big purchase is to get pre-approved for a mortgage at Lake of the Ozarks.  Please visit www.yourlakeloan.com or give us a call at (573) 216-7258 to get started.

Michael Lasson

Senior Mortgage Banker

NMLS #:  493712

Flat Branch Home Loans – Team Lasson

2882 Bagnell Dam Blvd

Lake Ozark, MO 65049

Cell:  (573) 216-7258

Email:  teamlasson@fbhl.com

Website:  www.yourlakeloan.com

**The postings on this site are my own and do not necessarily represent Flat Branch Home Loans positions, strategies, or opinions.

Flat Branch Home Loans NMLS 224149. A Division of Flat Branch Mortgage Inc. For more licensing information, visit NMLSConsumerAccess.org