05/03/2024
# U.S. interest rate market and housing market insights
U.S. 30-year and 15-year fixed mortgage rates have been rising the highest point since 2002 amid the Federal Reserve’s fiscal policy to control high inflation. Based on recent persistent inflation rates and U.S. Treasury 2-10 year rates inverted curves, the Fed is likely to reduce the rate cuts in 2024 (see Probability Forecast in Figure 2), resulting in higher mortgage rates for a longer period than expected! This would indicate higher-than-expected affordability pressure from home buyers; however, on the other hand, a good time window for those buyers who weights more temporary higher financial cost than the housing price booms up again when the Fed starts to cut rates to stimulate spending and economic growth! Simply, if you consider paying higher monthly mortgage (but refinancing later) before the housing market booms again, it is a very good time window to explore underpriced or even fair market value houses! Please contact us for expert guidance anytime!
