Mortgage rates spiked to nearly a 5-month HIGH after March’s inflation report (CPI) was released which showed that inflation increased more than what was forecasted. Headline consumer inflation rose 3.5% from the previous year (much higher than the Federal Reserve’s 2% target). That sent the yield on the US Treasury note up greatly as well as mortgage interest rates on April 10, 2024.
Now the market is pricing in only ONE 25bps rate cut this year and a potential for no Fed rate cuts this year! This is much different compared to earlier forecasts of 3 quarter point (25bps) rate cuts this year in anticipation that inflation would slow down. So far inflation has remained very sticky despite the Federal Reserve tight monetary policy which has kept the federal funds rate at a two decade high.
The higher for longer interest rate environment will especially hurt those with high credit card balances and HELOCs. As of February 2024, US credit card balances reached a new all-time record high of $1.34 trillion dollars. This is especially bad because the delinquency rate for credit cards as of Q4 2023 (most recent data) is at the highest levels since Q4 2011. See links to my sources below.
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To give you a quick mortgage interest rates update, according to the Mortgage News Daily the average 30 yr fixed rate mortgage is around 7.3% for the current mortgage rates (at the time of filming this video for those with excellent credit).
Comment below: what’s your housing market forecast? Do you think a housing crash will happen or are your housing market predictions that the real estate market and home prices will continue to surge?
*** Jason Walter, CPA (inactive CPA lic 103885) Sacramento real estate agent and native (DRE 01923240) Mortgage Loan Officer, NMLS 2566691 Revest Homes (DRE 02174879, NMLS 2362319) [email protected]
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Disclaimer: Jason Walter is not a practicing tax accountant or a licensed attorney or financial adviser. Therefore, the information in these videos shall not be relied upon as tax, legal, or financial advice from a qualified perspective. If you need such advice, please contact a qualified tax accountant, attorney, or financial adviser. We have taken reasonable steps to check that the information in this video is accurate but we cannot represent that it is free from errors. You expressly agree not to rely upon any information contained in this video - it is for entertainment purposes only.
This video description may contain affiliate links that allow you to easily find the items mentioned in my videos as well as support the channel at no cost to you. Thank you for your support! Jason Walter is a licensed real estate agent and mortgage loan originator with Revest Homes in California (DRE 01923240 and NMLS 2566691).
