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Big News! Here’s What’s Coming Up Next 🎉

The Federal Reserve just announced a 0.25% rate cut — exactly what the market was hoping for! 🎉 During his press conference, Fed Chair Jerome Powell hinted that we might see more of these "calibrations" (that’s Fed-speak for rate cuts!) over time. When will it happen? That’s still a mystery, but the signs are positive!

What Did the Fed Have to Say?

The latest Fed statement highlights strong economic growth and easing inflation. While the job market is cooling down, the Fed assured that future moves will be guided by the latest data. Stay tuned — exciting times are ahead!

Will Mortgage Rates Drop Next?

Good question! While the Fed doesn’t set mortgage rates directly, the market often reacts before the Fed even makes a move. Rates have been a bit unpredictable lately, but that’s part of the excitement! It’s still too early to know exactly where rates will settle, but we’re keeping a close eye on it for you.

Should You Jump In or Hold Off?

Here are four reasons why now might be the perfect time to make your move:

1. You Could Lock in a Better Rate Before the Next Fed Move: Mortgage rates often shift in anticipation of Fed decisions or other big news. You might snag a great deal sooner than you think!
2. Beat the Competition: A Fed rate cut can spark more competition and push home prices up. By buying now, you could get a lower price even if the interest rate is slightly higher — and that could save you money in the long run!
3. Start Building Your Own Equity: Why keep paying rent and building your landlord’s wealth when you could be building your own? Each mortgage payment is a step toward owning your dream home.
4. Get Pre-Approved and Be Ready: A pre-approval now means you’ll be at the front of the line when the perfect opportunity comes up. Let’s get you ready to go!

We’ve Got Your Back Every Step of the Way

Not sure what to do next? We have powerful tools to help you weigh your options and understand the potential costs of buying now versus later.

Plus, we offer a variety of programs designed to help you manage higher rates. Consider a hybrid ARM for a lower starting rate that adjusts to a fixed rate later. Fixed-rate buydowns and HELOCs are also fantastic options that could help you move forward with confidence.

If you’re thinking about waiting, this is a great time to get prepared. A quick qualification consultation or pre-approval will give you a strong head start when you’re ready to take the plunge.

A Quick Recap on the Fed

The Federal Reserve sets key rates that affect overnight lending between banks. Back in March 2020, the Fed slashed rates to near zero in response to the pandemic.

With an inflation target of 2%, the Fed started raising rates in March 2022 as inflation surged. Fast forward to now: September marked the first rate cut since 2020, followed by another in November. We’re in a new chapter, and it’s looking promising!

Ready to Make Your Move? Let’s Do This!

Whether you’re buying a new home, refinancing, or tapping into your home equity, don’t let uncertainty hold you back. We’re here to guide you through it, and we’re closing loans every single day. 🏡💪

Let’s get started — we can’t wait to help you make your dreams come true!

 

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We hope this article was of value to you. For more great tips, bookmark our site and for all your mortgage needs, visit the A Team at TMFFMS.