5 January 2024 Mortgage Interest Rate Update.
January is off to a mixed start with some good news and bad news data for lower interest rates.
The ISM or Non Manufacturing Service Index came in lower than expected by 1.9%, while today’s Job Report numbers came in higher than expected with 216,000 jobs added to the economy with only 170,000 jobs forecasted.
Wall Street is having mixed reactions to these numbers with Goldman Sach’s chief economist still expecting 6 rates cuts this year starting in March and the chief economist for JP Morgan only predicting 3 rate cuts this year that wont start until June.
While I’m hoping for 6 rate cuts this year right now I’m inclined to agree with JP Morgan that 3 cuts are more likely.
We will have a better idea when next week’s Core Price Inflation data comes out on Thursday. Today the 30 year fixed rate conventional loan is averaging 6.75% nationwide and the 30 year fixed rate va loan is averaging 6.17%.