2023 has been rough for the mortgage and housing industry. However, the year is ending with optimism for better times ahead. Last week, the Federal Open Markets Committee (FOMC) held its short-term policy interest rates steady. Federal Reserve Chairman Jerome Powell said that while inflation remains “elevated,” the Fed anticipates making three 25 basis rate cuts in 2024, a signal to investors that rate hikes are over and a new phase of monetary policy is approaching.
In other words, Hurrah!
At the beginning of November, I was quoting just under 8% for 30-year fixed-rate mortgages. That was painful for both me and my clients. Already, I am back to quoting under 7% and, in some cases, closer to 6.5%. Although 6.5% is not wonderful compared to the historic lows we had in 2021, it is much better than 8%! Please contact us if you have any questions.
The Holiday Season
Hannukah is over, and it was very special this year. I had all my grandchildren and children together plus other family, which all of you know is heaven for me. I got a flashlight from the four-year-old and a beautiful bottle of hand soap from the two-year-old that they picked out themselves at a “store” at their nursery school. Best gifts ever! The next two weeks are filled with lots of family, friends, theater, and food.
I hope that everyone has a wonderful holiday and Happy New Year!