I hope your week is off to a great start! The Fed met this week, and the headline is a quiet one. Here is what it means for you.
The Fed Held Steady, but Not Unanimously
As expected, the Fed left its benchmark rate unchanged on Wednesday. The vote was 10 to 2, with two members preferring another quarter-point hike. The statement now calls the economy strong and says inflation remains elevated, while shifting toward waiting for more information before acting. Mortgage rates barely reacted. Daily rates ticked up a hair afterward and are still only a touch above last week’s low. It is a good reminder that the Fed does not set mortgage rates. Investor sentiment and the 10-year Treasury matter more, and renewed optimism about tech stocks has been the bigger tug lately.
Here’s Where Rates Stand
Freddie Mac’s weekly average slipped last week, the first dip in about two months after five straight increases. That is welcome relief, though it is still more than a full percentage point above a year ago.
Two Reports to Watch
Tomorrow morning brings GDP, expected to show solid growth powered largely by AI investment. Later this week, core PCE, the Fed’s preferred inflation gauge, is expected to run warm. A hotter surprise could nudge rates up, and a cooler one could help.
Buyers Are Done Waiting
A new Veterans United survey found 57 percent of prospective buyers expect higher rates a year from now, yet only 32 percent would wait for lower ones, down from 39 percent. Nearly three-quarters still plan to buy within the year.
Family Can Make the Difference
A Rocket Mortgage analysis found purchases by buyers under 35 are down 15 percent since 2018, while purchases involving a co-borrower age 55 or older are up about 3 percent. Many parents are joining the loan to add income. It can help, but a co-borrower becomes fully responsible for the loan, and their debts count too. A gift toward the down payment is sometimes a simpler route, so let’s talk it through.
Help You May Not Know About
Roughly 11 percent of down payment assistance programs now have no income limits, and 38 percent welcome repeat buyers. You may qualify even if you have owned before.
My best tip: with rates a little lower than last week, let’s rerun your numbers and see what assistance, a seller credit, or a rate buydown could change in your picture.
I invite you to call or text me at 818.307.6072 or simply send me an email. I’m always happy to run numbers for you!
