Friday, January 31, 2025 / by Maria Sims
Mortgage Rates & Home Buyers
Mortgage rates are holding steady. While this may seem insignificant given the higher percentages, the stability of mortgage rates carries significant implications for buyers and the broader housing market. Did you know that 100% financing for FHA, USDA, and VA loans is possible? Also, did you know that there are lots of local cities that offer specific grants? If you have no idea how to navigate these waters, we have experts here that are happy to explore options with you.
One of the biggest advantages in today's market is the expectation that mortgage rates will remain steady in the coming months. While these rates may not match the historic lows of previous years, stability offers reassurance. Buyers can plan their finances with confidence, knowing that sudden spikes in borrowing costs are unlikely. This consistency provides a sense of predictability, making it easier for those actively shopping for homes to move forward.
Despite stable mortgage rates, challenges persist with inflation & market activity. Mortgage applications declined this week, reflecting potential buyer hesitation. Additionally, the Federal Reserve maintained the Fed Funds rate, as expected, while inflation inched upward. The Fed is currently taking a cautious approach, monitoring inflation trends before making further policy adjustments. For many buyers, inflation remains a major obstacle. Rising prices across the economy directly impact consumers’ ability to save for a down payment, making homeownership feel increasingly out of reach. While mortgage rates are steady, affordability concerns continue to weigh heavily on prospective buyers.
Remember-Date the Rates and Marry the House!