As we enter November, interest rates are the lowest they have been in several weeks. For a while, buyers were flirting with 8% in many scenarios, but at least for the time being, most lenders are almost a half percent lower as we begin the month. October saw the bond market hit 5.00% for the first time in 16 years. The upward trend of the 10-year Treasury, which drives mortgage interest rates, tells us the market expects interest rates will remain higher for longer.
Some members of the Fed are still indicating another rate hike may be warranted, while others are hinting they may be done. This is relatively unsurprising and what we should pay more attention to is when markets feel the Fed is likely to start cutting rates. Right now, that sentiment is trending towards May or June of 2024, but as we’ve learned over the last year, only time will tell.
In other news, the Federal Housing Finance Agency (FHFA) is set to announce an increase to the conforming loan limit later this month. The current loan limit of $726,200 is the dividing line between whether a loan is ‘conventional’ or ‘jumbo.’ An increase to this limit means more buyers at higher price points will be able to avoid the somewhat onerous process of securing a jumbo loan and instead keep their mortgage in conventional loan territory. The FHFA is poised to announce that the new conventional loan limit will be raised to $750,000 for most areas of the US, including the greater Charlotte area.
To get in touch, reach out to your Helen Adams Realty agent or contact Tom Baker directly.
About IntroLend Carolinas
IntroLend Carolinas is a mortgage marketplace that allows you to compare your options side-by-side, giving you the confidence to know you are receiving the best possible rate and terms. Helen Adams Realty has dedicated finance managers in their offices who have been in the mortgage and customer service industries for decades and understand how to take great care of any borrower in any scenario.