Mortgage Rates Are Expected To Go Down This Year

It has not happened yet, but that doesn’t mean it won’t. Jerome Powell, the Chairman of the Fed, said they still plan to make cuts this year, assuming inflation cools:

“We believe that our policy rate is likely at its peak for this tightening cycle and that, if the economy evolves broadly as expected, it will likely be appropriate to begin dialing back policy restraint at some point this year.”

What This Means For Homebuyers

But you might not want to wait for this to happen. Mortgage rates are hard to forecast. There are a lot of factors that can change rates as the economy shifts. And it’s why the experts offer this advice. mark Fleming Chief Economist at First American, said:

“Well, mortgage rate projections are just that, projections, not promises and don’t forget how hard it is to forecast them. . . So my advice is to never try to time the market . . . If one is financially prepared and buying a home aligns with your lifestyle goals, then it could be the right time to purchase. And there’s always the refinance option if mortgage rates are lower in the future.”

Bottom line, if you’re looking to move and trying to time the market, probably not the best idea. If you’re ready and want to move, it is a good idea to do it now, especially if you can find the home you’ve been looking for.