It certainly looks like it!
you actually have to look back to September of 2024 to find a lower rate than we have today and that was very temporary since we saw rates bounce right back up last year as the Fed began easing rates but inflation put some fear in the markets.
Forecasts were looking for rates to drop into the low 6s by the end of 2025 and it is looking like the prognosticators might be right.
August was a good month for rates as we saw some significant improvement after the Employment report was released. The past few weeks we have been stuck in a tight range but the market keeps testing resistance levels in the credit markets and if tomorrow's BLS Employment report doesn't surprise the market with an unexpectedly strong number we appear to be poised for a nice improvement in rates.
In two weeks we also have the Fed meeting on 9/16-9/17 and there is a very good chance we will see Fed Funds dropped another 25bps. While this really will not have any effect on long term rates it is a good sign. Keeping in mind that the Fed's purpose is to control inflation and employment the best they can all while keeping the economy rolling... tomorrow's report is going to be closely looked at along with any revisions to previous reports. (for the past year there have been significant revisions lower on most of the jobs numbers)
While lower rates sound good, and I do welcome it... there is a down side. As rates drop, especially if we get under 6, there will be a lot more competition in the market especially in areas lacking inventory. This is likely to put more upward pressure on home prices. That is a GREAT thing if you own a home but if you are shopping for a home you might see prices climbing depending on your market. In NJ I do believe that will be the case. We still do not have enough inventory especially for first time buyers.
So the question becomes: Do I wait? In my opinion the only reason to wait is if you cannot afford to buy or if you don't think that purchase will be for the long run. You need a few years in a home to make sense in most markets. Looking back at history there are many cases where the waiting game will keep you paying rent for years if not decades before rates come down, all while housing prices continue to climb. A home is one of the few assets you can safely buy with leverage ( a loan) that is very likely to appreciate and build wealth all as you use it and enjoy it.
If you currently own a home it might be time to discuss the possibility of refinancing. You probably have a lot of equity and we may be able to lower your monthly payments, even if you don't see an improvement on your rate. I have a client in process now where we are increasing their mortgage rate to pay off all of there debt and it will save them over $1,500/month. The mortgage isn't always about the rate, it is part of your financial plan to help you improve your life.
I hope you had a GREAT summer! feel free to reach out with any questions.
Since 1987…. Helping your clients finance their piece of the American Dream. Do you have anyone you would like me to call?
If you are interested in following me on social media, I am on just about every platform as @RobRauf or @RobertRauf
If you are looking to purchase or refinance a home in NJ, please give me a call, I can also help you in all 50 states, CMG is licensed throughout the country.
Robert Rauf
Mortgage Loan Originator NMLS# 248937
http://www.RobertRauf.com
or my blog: http://activerain.com/blogs/rrauf
Cell (732)740-0175
RRauf@CMGhomeloans.com
www.RobertRauf.com
Since 1987 I have been helping my clients fulfill their dream of home ownership! CMG Home Loans is located at 222 Commons Way Toms River, NJ 08755. NMLS #1820. Visit www.RobertRauf.com for more information. NJ Mortgages, New Jersey Mortgages, Mortgages in NJ, mortgage in New Jersey, Mortgages in New Jersey, Toms River NJ 08753, Toms River NJ 08755, Brick NJ 08723, Brick NJ 08724 Mortgage in Ocean County NJ, Mortgage in Monmouth County NJ, Jackson NJ 08527, Howell NJ 07731, Lacey 08731 08734, Beachwood 08722 Bayville 08721,
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