should you wait for lower interest rates?
Unless you live under a rock you've probably heard the news that interest rates "dropped" this week. So what does that mean, exactly?
Well, it doesn't mean it's a direct reflection on MORTGAGE rates, but it is good news. The reality is, the folks who fund mortgages were confident this rate drom from the Fed was going to happen and already “baked” in that drop. Which is why you've seen rates in the mid to low 6's in the last few weeks. That drop was in anticipation of this announcement coming.
But it get's better. According to our friend David Churchill at Penrith Home Loans,
“The consensus among Fed officials at today’s meeting was that they now see two more 25 basis point (.25%) cuts this year, followed by four more cuts next year and two more cuts in 2026.”
Wait, it gets even better. Penrith is also offering a closing cost credit equal to 1% of your loan amount. This can be applied to lower your rate, or pay your closing costs. With that 1% credit, David has secured interest rates in the 5's this week- which is crazy compared to when they were almost to 8 at their peak!
So, what does this mean for you?
Have you been sitting on the fence waiting for rates to drop before you buy a new home? Stop waiting! Home prices are very likely going to continue to go up in the Portland market. The longer you wait, the more net worth you lose out on. If rates do drop lower (and I think this will very gradually happen into 2025), you can always refinance.
Have you been sitting on the fence waiting for rates to drop before you refinance? Stop waiting! A good lender can discuss how changing your finances around can improve your monthly cash flow. If you think you’re a candidate, please reach out and we'll connect you with a great lender.
Do you have a mortgage rate that begins with a 2 or a 3? Pat yourself on the back and know that rates will likely never get that low again.
Do you have a mortgage rate that begins with a 2 or a 3, and you’re ready for a new home? Let’s talk about how easy it is to turn your current home into a rental and buy a new one. There are so many long-term financial benefits to this.
Summer is winding to an end and we're starting to feel Fall coming! Sounds like a great time to make a move before we all hunker down for the winter. Let us know if we can help.