What’s the Latest with Seattle Mortgage Rates?

Recent headlines spark curiosity about the future of mortgage rates. Speculations suggested impending cuts by the Federal Reserve (the Fed) this year, potentially lowering rates. Although the Fed’s decisions regarding the Fed Funds Rate don’t directly dictate mortgage rates, they often influence them. However, in their recent meeting, the Fed did not implement a cut, at least not immediately.

The recent decision by the Fed involves numerous complex factors, but you don’t need to delve into intricate details. What’s crucial is understanding whether mortgage rates will decline. Here’s what you need to know about the potential trajectory of mortgage rates.

Mortgage Rates Are Still Expected To Drop This Year

While it hasn’t happened yet, that doesn’t mean it won’t. Even Jerome Powell, the Chairman of the Fed, says they still plan to make cuts this year, assuming inflation cools:

“We believe that our policy rate is likely at its peak for this tightening cycle and that, if the economy evolves broadly as expected, it will likely be appropriate to begin dialing back policy restraint at some point this year.”

When this happens, history shows mortgage rates will likely follow. That means hope isn’t lost. As a recent article from Business Insider explains:

“As inflation comes down and the Fed is able to start lowering rates, mortgage rates should go down, too. . .”

What This Means for You

But you don’t necessarily want to wait for it to happen. Mortgage rates are notoriously hard to forecast. There are so many factors at play and any one of those can change the projections as the economy shifts. And it’s why the experts offer this advice. As Mark Fleming, Chief Economist at First American, says:

“Well, mortgage rate projections are just that, projections, not promises and don’t forget how hard it is to forecast them. . . So my advice is to never try to time the market . . . If one is financially prepared and buying a home aligns with your lifestyle goals, then it could be the right time to purchase. And there’s always the refinance option if mortgage rates are lower in the future.”

Trying to time the market when considering a move is generally not advisable. If you’re prepared and eager to move, it might be beneficial to proceed now, especially if you discover the ideal home you’ve been seeking.

Bottom Line

If you’re in the market to purchase a home, let’s connect to ensure you stay informed about current mortgage rates and receive assistance in making the optimal decision for your needs.