PSA: Mortgage Rates

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1

This sub has seen an influx of rate questions lately so wanted to highlight some key points given many think the FED is going to drop mortgage rates this month:

  • Mortgage rates have experienced a notable decline of over 1.5% since late 2023, despite the Federal Reserve not making any cuts to its key interest rates. This decrease highlights that mortgage rates can move independently of Fed decisions.
  • Financial markets tend to anticipate potential actions by the Fed, leading to adjustments in mortgage rates ahead of any official rate changes. As a result, mortgage rates often reflect market expectations before the Fed’s actions are confirmed.
  • Looking ahead, any further adjustments in mortgage rates will likely be influenced more by economic data and trends rather than the Federal Reserve’s decisions on interest rates. Economic indicators such as employment figures, inflation rates, and GDP growth will play a crucial role in shaping future mortgage rate movements.
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2

Mortgage broker offered me 5.87% today. I’d like to get closer to 5.5% or lower, but pretty close to pulling the trigger on a refi

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3

Make sure you check out the lender mandated insurance you need. I’m glad mortgage rates are down a bit but home and flood insurance that you are forced to by have increased by about 20% and will only go up because competition is shutting down shop or leaving states.

Just bought a house and the news is not talking about this. So heads up. You WILL be mandated to secure the insurance needed to secure a loan and it will be a part of your monthly cash flow for the duration of the loan and it is going up very fast

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4

My guy is saying 4.9 isn’t that far off(maybe end of 2025) I’d hold off if you can.

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5

My property tax and home owners insurance (I did have a legitimate claim and got a new roof from catastrophic storm damage) have both gone up significantly and increased my payment by $100 a month recently. But I’ve seen that insurance premiums are significantly increasing everywhere no matter what…

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6

I bought mid 2023 @ 5%.

I’d roll the dice on a refi @ 5% again if I can drop PMI. Maybe the house has gone up some.

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