Another Holiday week is upon us....

As we approach the week of December 30, 2024, the mortgage market is exhibiting notable trends that prospective borrowers should consider. Here's an overview of the current landscape and what to anticipate in the coming days.

Current Mortgage Rates

As of December 30, 2024, the average mortgage rates are:

• Conventional 30-Year Fixed-Rate Mortgage: Approximately 6.72%

• FHA 30-Year Fixed-Rate Mortgage: Around 6.00%

• VA 30-Year Fixed-Rate Mortgage: Approximately 6.25%

  These rates have remained relatively stable in recent weeks, with slight fluctuations influenced by economic indicators and market sentiment.

Market Outlook for the Week of December 30, 2024

Industry experts predict that mortgage rates will remain within the current range, with the 30-year Conventional fixed rates hovering between 6.875% and 7.125%. Significant declines are unlikely until there are notable shifts in economic factors such as increased unemployment, reduced government spending, or renewed intervention by the Federal Reserve in the mortgage market.

Factors Influencing Mortgage Rates

Several key factors are contributing to the current stability in mortgage rates:

• Economic Indicators: Recent data suggests a robust economy, which typically supports higher mortgage rates. For instance, the U.S. economy has shown strong growth in the third quarter, maintaining a steady demand for housing loans.

• Federal Reserve Policy: While the Federal Reserve's policies influence overall interest rates, their direct impact on mortgage rates is indirect. Currently, there is no indication of significant policy changes that would lead to a substantial decrease in mortgage rates in the immediate future.

• Housing Market Dynamics: The housing market continues to experience an undersupply of homes, which affects buyer demand and, consequently, mortgage rates. A strong economy can help build momentum heading into the new year and potentially boost purchase activity.

Advice for Prospective Borrowers

Given the current market conditions, individuals considering purchasing a home or refinancing should:

• Monitor Economic Developments: Stay informed about economic indicators and policy decisions that could influence mortgage rates.

• Consult with Multiple Lenders: Different lenders may offer varying rates and terms. Comparing offers can help secure the most favorable conditions.

• Assess Personal Financial Health: Ensure that your credit score and financial situation are in optimal condition to qualify for the best possible rates.

LQ Take

Our philosophy has always been focused on helping our clients build strategies that will make them successful in any market. Lets discuss your individual needs and goals.