2025 ....Here we go!

January 2025 Monthly Newsletter
**LendingQuarters **

Happy New Year!

Welcome to 2025! As we embark on a new year, we’re here to keep you informed about the latest trends and updates in the mortgage market. Whether you’re considering buying a home, refinancing your current mortgage, or simply staying informed, this newsletter will provide valuable insights for the month ahead.

Interest Rate Market Commentary for January 2025

As we begin the year, the mortgage interest rate landscape remains shaped by economic conditions and market sentiment. Here’s what you can expect in the first month of 2025:

1. Rates Expected to Remain Stable with a Slight Upward Bias Mortgage rates have been holding relatively steady at the end of 2024, but January could bring slight increases. The 30-year fixed-rate mortgage is currently averaging around 6.75% to 7.00%. Rates for FHA loans hover around 6.00% to 6.25%, while VA loan rates are close to 6.25%.

   Key drivers include:

   • Federal Reserve Policy: While the Fed has not indicated any immediate rate hikes, they are closely monitoring inflation. Any unexpected inflationary pressures could lead to upward movement in Treasury yields, which influence mortgage rates.
   • Economic Growth: With strong economic indicators reported in Q4 2024, including low unemployment and steady GDP growth, the mortgage market is pricing in sustained strength in early 2025.

2. Housing Demand May Boost Rates Further The start of the year often brings renewed interest in homebuying, particularly for those making fresh resolutions to purchase a property. Combined with ongoing inventory shortages, this seasonal uptick in demand could lead to higher rates, especially for conventional loans.

3. Opportunities for Refinancing If rates increase, homeowners looking to refinance should act quickly to lock in today’s rates. Adjustable-rate mortgage (ARM) holders may want to consider moving to fixed-rate options to avoid future volatility.

Tips for January 2025

• Pre-Approval is Key: If you’re planning to buy a home this year, start the pre-approval process early. With demand likely to rise, a pre-approval letter can give you a competitive edge.
• Keep an Eye on Credit: Review your credit report and address any issues. A strong credit score can help you qualify for better rates.
• Consult with Your Broker: Mortgage markets are complex, and staying informed is crucial. I’m here to answer your questions and guide you toward the best financing options.

Quick Market Snapshot

• Conventional 30-Year Fixed: 6.75% - 7.00%
• FHA 30-Year Fixed: 6.00% - 6.25%
• VA 30-Year Fixed: 6.25%
• 10-Year Treasury Yield: Currently at 4.00%, expected to slightly increase due to market optimism.

Upcoming Events to Watch

• Jobs Report (January 5th, 2025): Strong employment numbers could push rates higher.
• CPI Data (January 12th, 2025): Inflation data will heavily influence the market.
• Federal Reserve Meeting Minutes (January 17th, 2025): Investors will look for hints on future rate moves.

Thank you for trusting me as your mortgage expert. I’m here to help you navigate the market and achieve your homeownership goals. If you have any questions or want to discuss your mortgage needs, don’t hesitate to reach out.

Here’s to a successful and prosperous 2025!
Warm regards,
Chad Robinson
800-473-7182
LendingQuarters

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