Recently, Fed Governor Waller and NY Fed President Williams, both key voting members, shared insights that are quite hopeful for the economy. They observed that current data suggests we're on track to achieve a "soft landing," which means reducing inflation to their target without triggering a recession. They also indicated that the Federal Reserve might be approaching a rate cut, likely around September, as confidence in managing inflation grows among Fed members.

From a mortgage perspective, here’s what’s happening:

• Mortgage rates have decreased back to the 6.81% range which is the same level they were this time last year.

• Refinance volume has increased by 15%, starting from a very low base, and is now 37% higher year-over-year, accounting for 39% of total applications.

What does this mean for you? Now is an excellent time for cash-out refinancing. If you’re considering home improvements or other projects, this could be your opportunity to tap into your home equity to fund those initiatives. Now’s the time to get those DIY projects going!  It is also a great time to buy, when the interest rates are lowered there will be another $4 million buyers entering the market making offers harder to get accepted, buy now while you have more negotiation power.
**scenario is used as a baseline (75LTV, 780 FICO, etc as of 7/17/2024**

Data Source