In 2020, mortgage rates hit historic lows, but since then, prospective homebuyers and refinancers have faced higher rates due to inflation and Federal Reserve policies. However, there's good news for 2024, with indications that rates could drop soon.
Recent trends show a promising decrease in mortgage rates compared to late 2023, and experts suggest further reductions could be on the horizon. To help you make informed decisions, here are three crucial upcoming dates to monitor this summer:
July 11, 2024: Inflation Report
The Bureau of Labor Statistics will release the June inflation report on this date. Recent reports have shown a steady decline in inflation, from 3.5% in March to 3.3% in May. If this trend continues in June, it could boost market optimism and lead to lower mortgage rates. While a formal rate cut is ideal, positive economic indicators like a lower inflation rate could prompt lenders to offer slightly reduced rates in anticipation.
July 31, 2024: Federal Reserve Meeting
The Federal Reserve will conclude its two-day meeting on this date, announcing its next steps on interest rates and inflation. If the July 11 inflation report is favorable, the Fed might hint at or announce its first rate cut of the year. This announcement could influence mortgage rates, making it a good time for potential buyers to act.
August 1, 2024: Post-Fed Decision Impact
Following the Fed's announcement, the market and lenders will have had time to react. This date could see significant changes in mortgage rates, providing an opportunity for borrowers to lock in a lower rate. Be prepared to act quickly to take advantage of any favorable rate movements.
Preparing for Opportunity
Given the speculative nature of mortgage rate movements, preparation is key. Homebuyers and those considering refinancing should stay informed and be ready to act swiftly to secure the best rates available.
As July approaches, homeowners and buyers alike are urged to mark their calendars and begin exploring lender options to maximize their chances of securing a competitive mortgage rate. Stay tuned for updates as these dates approach, and ensure you're positioned to make the most of any favorable rate adjustments.
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