As expected, the Federal Reserve cut interest rates last week. So the question is: now what?
Also, as expected, mortgage rates should drop – but by how much? Fannie Mae predicts mortgage rates will be in the 6.20% range by the 4th quarter of 2024 and around 5.70% by the 4th quarter of 2025. A nice drop from the 7.70% high in October 2023 but nowhere near the 3.0% average before the pandemic.
And how will this affect market prices? Time will tell.