Ep. 183 - Will Mortgage Rates Drop From 8% to 5% and Shake Up the “Lock-In” Effect?

Wondering how the latest economic data could affect your mortgage? In this episode, we explore the recent PCE reading and its implications for upcoming Federal Reserve decisions. We break down Fannie Mae's forecast of two potential rate cuts by year-end and what this means for the 30-year fixed mortgage rates. The discussion covers the concept of the "near money pipeline" - a staggering $2.7 trillion worth of mortgages that could become eligible for refinancing. We also examine the current state of the housing market, including inventory levels, new home builds, and projected home price growth. Whether you're a homeowner, potential buyer, or simply interested in economic trends, this episode provides valuable information on the future of mortgage rates and the housing market.

[00:00 - 01:00] - PCE reading and Fed meeting expectations

[01:00 - 03:02] - Fannie Mae's forecast for rate cuts and mortgage rates

[03:02 - 05:59] - The "near money pipeline" and potential refinancing boom

[05:59 - 08:23] - New home builds and builder confidence

[08:23 - 11:12] - Housing inventory and price trends across markets

[11:12 - 14:11] - Future outlook for mortgage rates and home prices

Key Quote:
“They're forecasting two more rate cuts by the end of the year." - Quinton Harris

Resources:
https://bit.ly/46nMxJ3

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