Hope you had a wonderful Thanksgiving filled with good company, laughter, and maybe even a slice of pumpkin pie (or two!). As we head into December, I wanted to give you a quick update on what’s been happening in the mortgage world.
Good news! Mortgage rates took a bit of a breather last week, offering a welcome reprieve for homebuyers. We even saw them touch the lowest point in over a month! 🎉 Freddie Mac reported the average 30-year fixed-rate mortgage dipped to 6.81 percent, down slightly from the previous week.
Why the dip? Well, it’s a mix of factors. The bond market, which heavily influences mortgage rates, got a boost from some positive news. The nomination of Scott Bessent as Treasury Secretary, perceived as someone who will prioritize fiscal responsibility, was welcomed by investors. Additionally, a ceasefire agreement in the Middle East eased geopolitical tensions, further contributing to a more optimistic outlook.
But hold on tight! While it’s encouraging to see rates trending downwards, the market can be unpredictable. There are still some things on the horizon that could cause rates to fluctuate. The November jobs report, due out this Friday, will be a key indicator of the economy’s health and could influence the Fed’s future decisions on interest rates.
We’re expecting to see a 200,000 rise in new job creation, a bounceback from October’s shocking 12,000 figure that reflected temporary layoffs due to strikes and hurricane effects. The question is whether part of the October weakness was genuine. If about 100,000 of expected job gains in November reflects recovery from October, it gives the kind of underlying number that suggests enough room for the Fed to cut rates in December.
Unfortunately, the unemployment rate is expected to tick up to 4.2 percent from 4.1 percent.
What does this mean for you? If you’ve been on the fence about buying a home or refinancing, now might be a good time to explore your options. With rates still hovering below where they were at this time last year, there are some attractive opportunities out there.
Looking ahead to 2025: Zillow predicts a more balanced market next year, with increased inventory giving buyers more negotiating power. They also anticipate that smaller, more affordable homes will continue to be in high demand. But remember, mortgage rates can be unpredictable, so it’s important to stay informed and be ready to move when the time is right.
Speaking of cozy… Zillow noticed a 35 percent increase in home listings using the word “cozy” this year! Maybe it’s time to find your own cozy home.😉
Want to chat more about your specific situation and goals? Feel free to send me an email or give me a call. I’m always here to help you navigate the mortgage market and find the best solution for your needs.