Mortgage Update: December 15
Quick Updates from The Fed
It's one day after the Fed meeting.
As expected, they increased short-term interest rates by 50 basis points. Keep in mind, short-term interest rates don't directly impact long-term interest rates, like 30 or 15-year fixed-rate mortgages.
The increase yesterday really didn't have much change to long-term interest rates, as of yesterday and today. That, of course, could change. It changes every day, but they have had very little impact so far.
The good news is, from the peak of interest rates being at 7.25%, 7.5%, they have decreased about a percent and a quarter. Right now, we're in the high fives to low sixes, depending on credit score, down payment and mortgage program. For now, it looks like we have settled at this rate of roughly 6%, which is good news because we do need some stability in the market.
List prices for homes are starting to drift downward a little bit.
If you are a potential seller, it's important to get with your real estate agent to secure some of those gains that you've seen over the last handful of years.
If you're a buyer, now is a great time to get prepared and pre-approved. Then you'll be ready to buy before the turn of the calendar and before the market gets really competitive come spring.
Please let us know if you have any questions. We'd love to help.