July 17, 2024

Political Commentary

News Politics Business Sports

US homebuyers are waiting for the Fed to start cutting interest rates. Here’s when 10 experts say it’s going to happen.

2 min read

The lack of homeowners selling their homes has contributed to a shortage of housing inventory.(Left) Kevin Dietsch/Getty Images, (Right) Getty Images

  • High mortgage rates make it difficult for prospective homebuyers to enter the market.

  • Mortgage rates could decline if the Federal Reserve cuts interest rates next year.

  • Here are 10 projections from experts on when the Fed’s first rate cut will come.

High mortgage rates have effectively frozen the US housing market. And while lower rates could be on the horizon, Americans might have to wait awhile.

The average rate for a 30-year fixed-rate mortgage is over 7%, up from roughly 3% at the beginning of 2022. This has deterred prospective first-time homebuyers from taking the plunge and made existing homeowners reluctant to sell their homes and buy another — they’d rather stick with the super-low rates they already locked in.

Meanwhile, the lack of people selling their homes has contributed to a shortage of housing inventory and helped prop up prices, which may not drop anytime soon. While these factors serve as deterrents for prospective buyers, interest rates may not stay this high forever.

The Federal Reserve has raised interest rates to combat inflation, but many experts predict it will move more cautiously — and perhaps even cut rates — over the next year, in response to slowing inflation and the prospect of a weakening US economy.

While declining interest rates wouldn’t directly cause mortgage rates to fall, the two tend to move in the same direction. That’s why prospective homebuyers would be wise to keep tabs on when the Federal Reserve’s first interest-rate cut might come — even though rates are unlikely to return to what they were a few years ago.

Business Insider compiled 10 expert predictions for when the first rate cut would come. The predictions are listed chronologically — experts who expect a rate cut to come soonest are listed first.

February

In August, Preston Caldwell, a Morningstar senior US economist,…



2023-11-24 19:38:54

All news and articles are copyrighted to the respective authors and/or News Broadcasters. VIXC.Com is an independent Online News Aggregator


Read more from original source here…

Leave a Reply

Copyright © All rights reserved. | Newsphere by AF themes.