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This Market Update is written by our Capital Market specialists each week to bring you insight into what's happening in the market and how it may affect mortgage rates and real estate trends.
Market Commentary
A Pivotal Week for Interest Rates and the Nation
This week marked a significant turning point, not only for interest rates but also for the nation as a whole. The Federal Reserve's decision to lower interest rates by a quarter-point, coupled with the election results, has created a dynamic landscape for economic forecasting.
The Fed's rate reduction was largely influenced by weaker-than-expected non-farm payroll figures and ongoing progress in combating inflation. However, it is crucial to note that the Fed's actions do not have a direct impact on mortgage rates. The trajectory of interest rates over the next four years will undoubtedly be closely monitored.
During the week of November 1st to November 8th, interest rates initially saw a slight uptick, but subsequently declined following the Fed's rate cut.
Fed Watch: Target rate (in bps) possibilities, according to the CME Group (as of 11/08/2024 – 12:30 PM EST):
Market Review: Optimal Blue's Production Metrics:
US Housing Outlook – September 2024:
Presidential Predictions
While the polls were once again disturbingly poor in telling us how voters planned to vote, prediction markets that rely on the wisdom of markets to offer odds on a candidate winning were materially better. The average odds from five political betting markets showed Trump with better than 50/50 odds heading into election day, and by the time the polls closed the odds had shot up considerably. - Elliot Eisenberg, Ph.D. , Economist
News You Can Use
- Federal Reserve issues FOMC statement
- Consumers Feeling Better About Housing Market Despite High Home Prices
- Trump’s presidency signals new regulatory era for mortgages
- Mortgage demand has fallen 41% since Fed’s 50 bps cut
- These two ‘low tax’ states are getting socked with fast-rising property taxes
- 10 affordable cities poised to become million-dollar markets in a decade
- Almost 90% of Metro Areas Posted Home Price Increases in Third Quarter of 2024
- First-Time Home Buyers Shrink to Historic Low of 24% as Buyer Age Hits Record High
Interest rate and annual percentage rate (APR) are based on current market conditions as of 11/8/2024, are for informational purposes only, are subject to change without notice and may be subject to pricing add-ons related to property type, loan amount, loan-to-value, credit score and other variables. Estimated closing costs used in the APR calculation are assumed to be paid by the borrower at closing. If the closing costs are financed, the loan, APR and payment amounts will be higher. Contact us for details. Additional loan programs may be available. Accuracy is not guaranteed, and all products may not be available in all borrower's geographical areas and are based on their individual situation. This is not a credit decision or a commitment to lend. actual interest rate, APR, and payment may vary based on the specific terms of the loan selected, verification of information, your credit history, the location and type of property, and other factors as determined Prosperity Home Mortgage, LLC, dba Edina Realty Mortgage. Not available in all states. Rate is as of 11/08/2024 and is subject to change at any time without notice. Opinions, estimates, forecasts, and other views contained in this document are those of Freddie Mac's economists and other researchers, do not necessarily represent the views of Freddie Mac or its management, and should not be construed as indicating Freddie Mac's business prospects or expected results. Although the authors attempt to provide reliable, useful information, they do not guarantee that the information or other content in this document is accurate, current, or suitable for any particular purpose. All content is subject to change without notice. All content is provided on an "as is" basis, with no warranties of any kind whatsoever. Information from this document may be used with proper attribution.
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