The Latest News About Mortgage Rates

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You probably have been seeing some of the headlines lately that lead you to question what is in store for mortgage rates. A little while ago there was chatter that there were going to be cuts that would bring rates down. This was specific to the Federal Reserve (The Fed) and the Fed Funds Rate. Any fluctuation of the Fed Funds Rate does not directly set mortgage rates, but it does typically impact them. As of the recent meeting the Fed had, a cut was not yet made. While there are several things that go into how the Fed makes their decision to make a cut, the real question everyone has is if this means that mortgage rates will follow suit with a drop.

Mortgage Rates Should Still Drop This Year

Just because it has not yet happened does not mean that it is not going to happen at all. Jerome Powell, the Chairman of the Fed, says they still plan to make cuts this year, assuming inflation cools: “We believe that our policy rate is likely at its peak for this tightening cycle and that, if the economy evolves broadly as expected, it will likely be appropriate to begin dialing back policy restraint at some point this year.”

When this happens, patterns historically have shown that mortgage rates will likely follow. That means hope isn’t lost. As a recent release from Business Insider explains: “As inflation comes down and the Fed is able to start lowering rates, mortgage rates should go down, too. . .”

What This Means

With any rate movement it isn’t necessarily the best idea to wait for it to carry over to mortgages. Mortgage rates are very difficult to forecast what and when things will happen. There are so many factors at play and any one of those can change the projections as the economy changes. And it’s why the experts offer this advice. As Mark Fleming, Chief Economist at First American, says: “Well, mortgage rate projections are just that, projections, not promises and don’t forget how hard it is to forecast them. . . So my advice is to never try to time the market . . . If one is financially prepared and buying a home aligns with your lifestyle goals, then it could be the right time to purchase. And there’s always the refinance option if mortgage rates are lower in the future.”

So at the end of the day if you’re looking to move and trying to time the market, don’t hedge your bets on any specific time in the future. If you’re ready now, prepared and able to move then it may still be worth it to do it, especially if you can find the right home you’ve been looking for.

Beth Dickerson

Boston, MA

Primary phone
(617) 510-8565
Email
[email protected]
Address
277 Dartmouth St. , 2nd Floor,
Boston, MA 02116

About The Author

One of Boston’s most reputable real estate brokers, Beth Dickerson has achieved more than $2 billion in sales and thousands of successful real estate transactions over her nearly thirty-year tenure. Beth has received national acclaim from the real estate industry and represents some of the most prestigious residents and properties across Massachusetts. Her enduring record as a top producer comes from the intuitive gift of sensing her clients’ needs. She has built a business that is referral-based at its core—a testament to her relationship-driven approach and penchant for exceeding expectations. It is this nuanced expertise that Beth leverages to guide many of her clients-turned-friends through some of the greatest milestones of their lives.

Beth was the proprietor of her own real estate company before joining the residential division of R. M. Bradley in 1993, where she was a top producer for more than a decade. In 2003, she founded her own boutique real estate firm, Dickerson Real Estate, before merging with Gibson Sotheby’s International Realty in 2007. Today, Beth attributes her success to her comprehensive marketing and advertising strategies, exclusive contact network, and unparalleled insight into neighborhoods like Back Bay, Beacon Hill, the South End and Waterfront. With an understanding that no two clients are alike, she works with clients in all phases of life—from first-time buyers to luxury developers, seasoned sellers and beyond. Beth offers clients the resources to aggressively market their property locally, nationally and globally, and her attention to detail, drive and enthusiasm are unmatched.

Beth has appeared in prestigious media outlets including The Wall Street Journal, Mansion Global, The Boston Globe, and Boston magazine, and was prominently featured as Greater Boston’s real estate expert on WCVB Chronicle in 2020. She has had the honor of serving as President of the Downtown Council of the Greater Boston Real Estate Board. For over ten years, she has been a Co-Chair and Committee Member for the Massachusetts General Pediatric Hospital for Children’s Storybook Ball. She serves as a Board Member of the Community Music Center of Boston and a member for the Perkins School for the Blind, Emerald Necklace Park Conservancy, Justine Liff Luncheon, Youth Villages and the Boys & Girls Club of Boston, among dozens of other organizations throughout the Boston area.

A long-time resident of Boston’s Back Bay, Beth was an active member of the community as she raised her two children: she served as treasurer of the Clarendon Street Playground and was an avid supporter of the Hill House Community Center.