Mortgage Rates are Falling

[bjl584]

Good news for the homebuilders and some would-be buyers, but people locked into low rates still may be reluctant to sell and move.

Mortgage rates are dropping. Here's what to expect in 2024 if you want to buy a home, experts say (msn.com)

[disneysteve]

Once again, more good news on the economy. Everything is cruising along in the right direction.

[Fishindude77]

My first mortgage was 9.9%
Current rates are high compared to the past decade which was historically low, but 6,7,8% rates of today are not anything we've never seen before.

If the interest rates go back down, so will your investment rates, CD's, etc.

[ua_guy]

Historically, today's rates aren't off the charts.

It's the principal balances on which those interest rates are applied which makes them absolutely stifling.

9.9% on an $85,000 house 40 years ago is a little different than say 7.37% on $950,000 today. That's where it doesn't really matter for the average person who finances a home today if CD rates go back down. If they can refi and get 2-3% lower those CD rates don't matter on average household cash/savings.

[disneysteve]

My first mortgage was 9.9%
Current rates are high compared to the past decade which was historically low, but 6,7,8% rates of today are not anything we've never seen before.

If the interest rates go back down, so will your investment rates, CD's, etc.

Yep. Our first mortgage was 9% in 1994. By our last refi we were at 2.99%.

As a near-retiree, I’m more concerned with those CD and bond rates but as far as the economy is concerned, the cost of debt is much more important. Cheaper borrowing also benefits the stock market so while we will earn less on fixed income we’ll probably earn more on equities.

[LivingAlmostLarge]

It will take some time for people to start buying though. The rates need to fall first for affordability to happen