High interest rates have been holding a lot of would-be homebuyers back from purchasing a home. For some people, high rates would produce too much of a strain. For others, they can take homeownership outright out of range for what is possible within their budgets. But now, we have some good news. Homebuyers may soon be able to take advantage of falling interest rates.
Interest Rates Have Just Dropped
The Federal Reserve had just announced a reduction in the federal funds rate. It is the first time that has happened since March 2020. The rate cut was half a point, which is significantly larger than what many expected. This may also not be the only rate cut that happens before the year’s end.
Now, the big question is, “What does this mean for mortgage rates?” Will they also go down? They may, but it depends in part upon the 10-year Treasury yield rate. You also need to keep in mind that lenders sometimes anticipate drops in mortgage rates and “price in” rate cuts ahead of time. If that has already happened with a lender you are considering, you will not see a further reduction.
It Still Pays to Shop for the Most Competitive Offers
Even a modest drop in mortgage rates can make a huge difference in terms of the affordability of buying a home. So, prospective homebuyers will want to keep a close eye on the rates throughout the duration of 2024 in case there are further adjustments.
One thing that you need to keep in mind is that the cost of housing as a whole will remain high, even if mortgage rates go down. The reason for this is that there is limited home inventory right now, but a lot of buyer demand. This issue exists nationwide, including in Florida.
The more competitive your mortgage offer, the more home you will be able to afford. So, even if rates decrease, it is worth taking the extra time to shop around. Different mortgage lenders have different underwriting guidelines, as well as different deals. That means that some lenders may save you significant money over others.
Let Us Shop the Rates for You
As a mortgage broker in Florida, Premier Lending Corp can take the hard work of shopping around for mortgages off your hands. We operate as a mortgage broker, which means we function as a go-between for lenders and homebuyers.
We have a network of established relationships with banks and lenders throughout FL. We can shop that network on your behalf, bringing you the most competitive mortgage rates and terms. Sometimes we even have access to special deals that are not advertised to the public.
To begin the process, please give us a call today at 954-840-8811. We are based in Cooper City, and can help connect you with a competitive home loan anywhere in the state of FL.