This Market Update is written by our Capital Market specialists each week to bring you insight into what's happening in the market and how it may affect mortgage rates and real estate trends.
Market Commentary:
For the week of Dec 8th – Dec 14th, 30-year and 15-year interest rates continue to decrease. The markets are in the holiday spirit and rates are coming down, with the 30-year fixed having dropped from a high in the 8’s to under 7%. For our Veterans and FHA borrowers, rates with reasonable discount points can be found starting in the 5’s. The 10-year Treasury has declined from a high in late October of 5% to 3.953% on 12/14/2023.
Fed Watch: Looking ahead, all eyes are now on the upcoming January 31st, Federal Open Market Committee (FOMC) meeting. According to the CME Group, 0.0% of forecasters predict an increase in interest rates, while 88.6%% predict rates will remain the same. 11.4% of forecasters expect rates to decrease.
Review:
Per Black Knight's Production Metrics, the breakdown of mortgage production volume is as follows: 82.19% for purchase transactions, 14.17% for cash-out refinances, and 3.65% for rate and term refinances.
News You Can Use:
- Fed keeps rates at 22-year high as inflation retreats
- NAR Forecasts 4.71 Million Existing-Home Sales, Improved Outlook for Home Buyers in 2024
- Here’s the inflation breakdown for November 2023 — in one chart
- Fixed mortgage rates should be around 6% by this time next year, says Moody's Mark Zandi
- Expert Panel Sees Home Prices Rising 2.4% in 2024 and 2.7% in 2025, New Fannie Mae Surve
- Challenges Remain in Raising Consumer Awareness of Flood Risk
- Gas prices have fallen 19% since September, hit lowest point of year ahead of holiday
*Communication is intended for Industry Professionals only and not intended for Consumer Distribution
Interest rate and annual percentage rate (APR) are based on current market conditions as of 12/14/2023, are for informational purposes only, are subject to change without notice and may be subject to pricing add-ons related to property type, loan amount, loan-to-value, credit score and other variables. Estimated closing costs used in the APR calculation are assumed to be paid by the borrower at closing. If the closing costs are financed, the loan, APR and payment amounts will be higher. Contact us for details. Additional loan programs may be available. Accuracy is not guaranteed, and all products may not be available in all borrower's geographical areas and are based on their individual situation. This is not a credit decision or a commitment to lend. actual interest rate, APR, and payment may vary based on the specific terms of the loan selected, verification of information, your credit history, the location and type of property, and other factors as determined by Prosperity Home Mortgage, LLC. Not available in all states. Rate is as of 12/14/2023 and is subject to change at any time without notice. Opinions, estimates, forecasts, and other views contained in this document are those of Freddie Mac's economists and other researchers, do not necessarily represent the views of Freddie Mac or its management, and should not be construed as indicating Freddie Mac's business prospects or expected results. Although the authors attempt to provide reliable, useful information, they do not guarantee that the information or other content in this document is accurate, current, or suitable for any particular purpose. All content is subject to change without notice. All content is provided on an "as is" basis, with no warranties of any kind whatsoever. Information from this document may be used with proper attribution.
