The Federal Reserve Board left policy rates unchanged at their most recent meeting, as expected. Mortgage rates had already fallen in anticipation.
Looking ahead to 2024
In conjunction with their meeting, the Fed released its most recent set of economic projections. Officials expect inflation to fall more quickly than previously anticipated, reaching their target of 2% in 2026.
While individual board members have been saying that further rate increases are still on the table, the projections showed expectations for up to three cuts in 2024.
If rate cuts are expected, should you wait to buy, refi or access equity?
Not necessarily.
Mortgage rates move based on demand for mortgage-backed securities, and investors typically act in anticipation of Fed actions. You may be able to access lower rates before the Fed makes a move.
We also have programs that can help mitigate higher rates if they don't fall as fast as you'd like. A hybrid ARM, for example, offers a lower initial rate before adjusting to market rates later. Fixed rate buydowns and HELOCs can help you move forward with your plans, too.
If you want to wait a little longer for more favorable rates, this is a good time to start preparing so you’ll be ready when the time is right for you.
The Fed raised rates for 11 of the last 15 meetings, with pauses in June, September, November and December.
If this is your time to buy, refinance or access cash from equity, don't let uncertainty about rates slow you down. We're here to help, and we're still closing loans every day!