Fire up the money machine

From Yahoo Finance:

Mortgage rates decline for 4th straight week

The national average on the 30-year, fixed-rate mortgage inched down to 6.86% from 6.87% a week prior, according to Freddie Mac’s report published on Thursday. Rates have declined for four consecutive weeks and are at the lowest since April.

The housing market has been sluggish — many home sellers have stayed put to keep their favorable mortgage rates, while buyers facing affordability challenges retreated from the market. However, both inventory and affordability could ease up as rates are projected to decline for the remainder of the year.

“We are probably going to see rates decline slowly from here through the end of the year,” Joel Kan, deputy chief economist for the Mortgage Bankers Association, told Yahoo Finance. “And if our forecast is right… that helps potential homebuyers.”

The Mortgage Bankers Association is currently predicting the Federal Reserve will cut its benchmark federal funds rate twice in 2024, lowering mortgage rates to around 6.5% by the end of this year.

“I think the odds are still fluctuating, but that’s the base case,” Kan said, citing improving inflation data as the primary driver for potential falling interest rates. Annual inflation eased in May, with consumer prices rising 3.3% year over year.

Wells Fargo’s June economic summary forecasted mortgage rates would reach 6.5% by year-end, while Fannie Mae expects them to land at 6.7%.

This entry was posted in Economics, Housing Bubble, Mortgages, National Real Estate. Bookmark the permalink.

16 Responses to Fire up the money machine

  1. Fast Eddie says:

    6.86% is still not 3% so come back in two years and reassess. As a 1st time buyer or looking to move up, I’d be suicidal if I was searching. I need to take a look at current inventory and the prices, it’s been a while. I’m sure we’re closer to the $million dollar cape in Elmwood Park.

  2. Chad Powers says:

    Looking to buy our neighbor‘s house next door. The old lady who owned it died last fall and her daughter inherited it. The daughter is sitting on it for a while but I think she‘ll sell prior to winter to avoid the overhead that comes with the house. She actually lives about 1 1/2 hours away. It would be a cash sale so fairly uncomplicated. I‘d rent it out as a short term (6-12 month) furnished rental, which are pretty popular in this area for professionals coming in to work.

  3. Juice box says:

    My cousin is selling his 2 family rental house. Last time he listed it was about 8 years ago for less than the price he paid during the bubble, no serious
    offers that time. This time it’s listed for $640k and really is a POS on pretty much a highway. It’s priced right this time? We shall see.

  4. Fast Eddie says:

    Juice,

    Where is your cousin’s house? Which state/metro area?

  5. 3b says:

    Fast: Fairlawn first for the million dollar cape than Elmwood park.

  6. Chicago says:

    LFGM

  7. JUice Bopx says:

    3B – Here you go… 1.4 million move in ready right next to the school.

    https://www.zillow.com/homedetails/138-Fairview-Ave-Bergenfield-NJ-07621/37854597_zpid/

  8. LAX says:

    51 Million people watched an elderly man stand mumbling at the podium.
    But the DNC says: He’s the only choice, he just had a bad night. Oy.

  9. Juice Box says:

    Biden is at a fundraiser in town all roads near Governor Murphy’s house are closed.

  10. BRT says:

    Juice, did they knock down the existing house there? I remember there being a house on the corner there. A quick google maps check looks like its. We used to climb up onto the roof at Lincoln school easily from the front entrance. Btw, that road was crummy and cracked up in the 80s…it’s never been repaved. It was concrete, not asphalt, but every time it cracked, it got patched with asphalt.

    Check it out

    https://www.google.com/maps/@40.9182551,-74.0068875,3a,75y,351.25h,70.72t/data=!3m6!1e1!3m4!1sdqX7Tfiz49AtS_YWzMKyBA!2e0!7i16384!8i8192?coh=205409&entry=ttu

  11. JUice Box says:

    Looks like it……. check out the farmer white house a few houses down.

  12. 3b says:

    Juice: Ugly house, looks like the duplex type they are building in Ft Lee, and Garfield and other towns. If it was closer to Teaneck, there might be interest from the Orthodox Jewish community. I have heard the schools are getting better in Bergenfield, but don’t know. 1. 3 million in Bergenfield, it’s insane. And Washington Ave looks sad and dreary.

  13. Fast Eddie says:

    We’re all Queens now. Mish-mosh jammed into tiny lots with a blind eye towards balance and ambiance. Are they selling cars out of their house? Any hookah stands on the corner? Any sidewalk bazaars around? And is there a pride flag on that house? It needs a pride flag!!

  14. Old realtor says:

    There are no longer undesirable areas of Bergen County. Before the pandemic South Bergen was on fire and northern towns were drifting sideways and downward. Now the entire county remains hot. Schools are bound to improve as the economic bar to entry rises. The effective age of North Jersey’s has been reduced substantially by the sustained hot market and massive interest in real estate investment.

  15. Old realtor says:

    Effective age of North Jersey’s housing stock

  16. Fast Eddie says:

    There are young families littered all over my neighborhood. It’s actually nice to see. Kids are bike-riding and you can hear them in the distance when windows are open and the house is quiet. I suspect recent purchases (covid era) are mostly backed by Mom and Dad boomer money.

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