Rate Cuts & Reality Checks: Debunking First-Time Homebuyer Myths
November 08, 2024
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Written By: Brandi Paucek
November 08, 2024
This week the Federal Reserve met and cut the Fed funds rate for the 2nd time in a row. Immediate effects were good-will that hold this time? There were a few interesting questions and issues addressed during Chair Powell’s press conference afterward.
Interest Rates
30-yr fixed | 6.92% |
15-yr fixed | 6.18% |
30-yr fixed FHA | 6.65% |
30-yr fixed VA | 6.52% |
Interest Rates: Fed Week
As expected, the Federal Reserve cut their short-term overnight rate by 0.25% Thursday, sparking a nice rally in the mortgage bond market. That held today, keeping us at the top of the range we’ve been stuck in for October. We are also above the 200 day moving average. It would be great to see this momentum continue to carry us through the end of 2024, but we have a bumpy road with inflation expected to rise slightly on the next two reports. We have one Fed meeting remaining for the year as well.
Program Spotlight: First-time Homebuyer
Many clients confuse first-time homebuyer programs with down payment assistance programs. They aren’t the same! Just about all down payment assistance allows non-first-time homebuyers. One of the only valid first-time homebuyer programs is the 3% down conventional loan. A first-time homebuyer is a person who has not owned a home in the three years before application. Comparing loan options with and without down payment assistance is a great way to empower clients in financing decisions.
Coming Events: Free Continuing Education—11/21, 9 AM to 12 PM (3 Hours Fair Housing)
This class will explore some of the historical events that led to fair housing laws in the US, and the basis for some of the need for Fair Housing Laws: