Scott here with Homeport Residential and your 14 December Mortgage Interest Rate Update.
The bottom-line up front, Interest rates have plummeted to their lowest levels since May of 2023 following Jerome Powel’s remarks yesterday.
While chairman Powel did not have anything new to say at December’s Fed meeting, he did reiterate that further rate hikes are unlikely unless inflationary data surges in a surprising way.
The Fed’s forecast of its policy rate, or what’s known as its dot plot, shows a median rate of 4.6% by the end of 2024 which works out to around a 75 basis point cut throughout next year.
It’s important to emphasize that all of these predictions are subject to change based on inflation, jobs, and other market factors in 2024, however the current estimates are welcome news heading into the holidays and the new year.
Right now 30 year fixed rate conventional home loans are averaging 6.62% nation wide and the 30 year fixed rate va home loan is averaging 6.15%.