The mortgage market has always been a bit of a rollercoaster, but lately, it feels like it’s been on a wild ride. COVID-era shifts led to a migration from big-city apartments to suburban homes and smaller communities. The resulting rise in property values, combined with historically low interest rates, sparked an unprecedented boom in home refinancing.
In late 2022, the Federal Reserve responded to rising inflation by increasing interest rates. While the federal funds rate doesn’t directly control mortgage interest rates, it influences the secondary financial markets that drive mortgage pricing.
With inflation reined in and the Federal Reserve easing up, the mortgage market will soon return to its typical peaks-and-valleys cycle. While this looks promising, home shoppers and owners have been waiting in the wings for rates to drop. If they all jump into the market at the same time, the 4th quarter of 2024 is likely to bring its own set of twists and turns.
Just like a rollercoaster, the mortgage market is a lot less intimidating when you have a friend who has been on the ride before. The Boles Group Lending team will make sure you know what to expect and will hold your hand through the scary parts.
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