What happened? We had another rate cut by the Federal Reserve, but mortgage rates are rising. Inflation is real and investors clearly see that affecting their investments. Keep an eye on the 10-year Treasury yield because this draws the same investors as mortgage-backed securities.
Mortgages rates are hovering around 7 1/2%. Shelter costs are still high. Inventory is still low. A lot of homeowners are still rate locked when they refinanced a few years ago. If we’re going to see significant movement with existing homes, mortgage rates likely need to get below 6%.
The Federal Reserve is set to meet 1 more time in 2024 (December 10 – 11) where we might get another rate cut and they’re scheduled for 8 meetings in 2025.