Halfway Through the Year, Where Are We at with Interest Rates? Let's Take a Look.

Welcome! I'm Briana Harper with Moreno Hammond Associates, based at Fashion Island in Newport Beach's Surterre Properties main office. For the latest market insights, follow me here or on Instagram at @brianaharper_, where I delve into more detailed analysis. Now, let's talk interest rates and where they stand:

Home Loan Rates Improve to Finish the 1st Half of 2024

Great news for homebuyers! As of June 26th, 30-year fixed mortgage rates, according to Freddie Mac, stood at 6.86%, marking the best levels since early April. This improvement is attributed to weak economic news both domestically and internationally, moderating inflation, global uncertainties, and the anticipation of a Federal Reserve rate cut.

Looking ahead to the second half of 2024, we'll be closely monitoring key inflation and labor market indicators, which will influence the Federal Reserve's decision on interest rates. Two critical factors to watch are oil prices and the Presidential election. Recently, oil prices surged to $84 per barrel from $73 a month ago. Since oil significantly impacts headline inflation, sustained high prices could delay a Fed rate cut.

Historically, oil prices and 30-year fixed mortgage rates tend to move in tandem—when oil prices rise, mortgage rates often follow suit, and vice versa.

Regarding the Presidential election, we can expect some uncertainty. Typically, bonds and interest rates benefit from such environments.

Why Now is a Great Time to Buy

Despite some market fluctuations, current mortgage rates remain favorable, making it an excellent time to consider purchasing a home. The slight dip in rates offers potential buyers an opportunity to lock in more affordable financing, which can lead to significant savings over the life of a loan.

Looking Ahead

Next week brings the crucial Consumer Price Index (CPI) report. Given the sharp increase in oil prices since early June, a higher-than-expected CPI reading could unsettle bonds and interest rates. Conversely, a lower reading could have a calming effect.

Stay tuned for more updates and insights, and don't miss this chance to take advantage of the current favorable market conditions to make your homeownership dreams a reality!

Contact me directly on our Contact page or call 949-322-6404. I look forward hearing from you!