April Real Estate Roundup: The Latest Rates Outlook

The Federal Reserve officials met again March 19-20, one of their periodic, planned gatherings to consider interest rates, inflation, and how to continue addressing these issues. Here’s what we can expect next:  

Why Rate Cuts Aren’t Here Yet  

For now, the Fed is not raising or (as hoped) lowering rates - the benchmark 5.25% will remain unchanged. (Remember, this is not an actual “mortgage” rate, but rather the rate that U.S. banks pay each other to borrow or loan money.) 

Chair Jerome Powell said the unexpected increase in inflation for January/February, as well as a strong labor market, did not fundamentally change the Fed’s outlook. Officials still expect inflation to continue to slow, but more gradually than was expected three months ago. While the Fed’s 11 previous rate hikes have gained some ground in lowering inflation, the central bank feels that rates should not be cut just yet. 

3 Rate Cuts Predicted for 2024 

However, three possible cuts this year were suggested. Wall Street is predicting the first of three hinted cuts in either June or July. Here are Fannie Mae’s adjusted 30-year fixed rate expectations for 2024-25: 

Using Tax Refunds for Buying a Home 

While we watch interest rates, remember that it’s tax season, and even small refunds can go a long way toward purchasing a home, for example:  

• Down payment 

• Closing costs 

• Paying discount points to lower the rate 

There are also down payment and closing cost assistance programs that can help.  

I’m happy to help if you or your buyers have questions about rates, tax refunds, or anything else – just reach out!