Santa Slashes Rates: Mortgage Chill-Out in Time for the Holidays! #GetSeenGetSoldTeam

Mortgage Rates Drop Under 7% - Is Santa Early This Year?

Hey folks, guess what? Mortgage rates finally decided to take a break from their wild roller coaster ride and dipped under 7% for the first time since mid-August. That’s right, for the past seven weeks, rates have been dropping like a hot potato, and I'm not complaining. The reason? Good ol' inflation is starting to behave, and the Federal Reserve has hit the pause button on rate hikes.

Fed Teases Rate Cuts: Are We Dreaming?

Now, don’t get too excited, but the Fed hinted at their latest tea party – I mean, meeting – that they might slash rates in 2024. Translation: mortgage rates could keep sliding down that slippery slope. So, if you’ve been playing the waiting game, you might be in for a treat.

Housing Affordability: Back to the Future, 1984 Style

Here’s the kicker: this is the least affordable housing market since 1984. Yeah, you heard that right. We’ve time-traveled back to the era of big hair and leg warmers, but without the fun.

The 30-Year Fixed-Rate Mortgage: A Roller Coaster Ride

The 30-year fixed-rate mortgage averaged 6.95% for the week ending December 14, a slight nudge down from 7.03% a week earlier, courtesy of Freddie Mac. A year ago? It was a modest 6.31%. Oh, how times have changed.

Average Mortgage Rate: For the Elite Only

By the way, this average mortgage rate isn’t for just anyone. It’s based on applications Freddie Mac gets from lenders nationwide, but only those who cough up a 20% down payment and have credit so good it sparkles. If you’re a mere mortal, your rate might be a bit different.

Freddie Mac’s Chief Economist: The Optimist

Sam Khater, Freddie Mac’s chief economist, was probably doing a happy dance when he said, “Mortgage rates below 7%? Party time!” Okay, he didn’t say that, but he did mention something about a ‘gradual thawing of the housing market’ next year. Fingers crossed he’s not just seeing the world through rose-colored glasses.

The End of the Mortgage Rate Madness?

In mid-August, rates were over 7% and peaked at a jaw-dropping 7.79% at the end of October. But the recent trend suggests we might have seen the worst of it. Good news for those of you who’ve been gritting your teeth at the thought of buying a house lately.

So, there you have it. The light at the end of the tunnel for mortgage rates might just be getting brighter. Or, it could be an oncoming train. Time will tell. Meanwhile, if you’re thinking of buying or selling, don’t forget your pals at the #GetSeenGetSoldTeam. We’re like real estate ninjas – you don’t see us, but we get the job done.

Mike Radie, Leader of the #GetSeenGetSoldTeam

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