Let’s break this down:
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The Fed is trimming down on mortgages
– The Federal Reserve plans to cut $35 billion per month from its mortgage balance sheet.
– This move aims to steer mortgage rates from deploying their parachutes anytime this year.
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Expect no dramatic drop in mortgage rates
– Despite pressures from various quarters, the Fed’s decision means mortgage rates won’t be deep diving this year.
– So, if you were hanging ten for a significant drop, you might have to keep your surfboard in the garage for now.
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Investors are keeping their eyes on the Fed
– Real estate investors have their binoculars focused on the Fed.
– Predictably, their moves will largely be influenced by the Fed’s trim-down.
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Real Estate Market might get a bit shaky
– The Fed’s move might lead to a slight tremor in the Real Estate market. But hey, what’s life without a bit of thrill?
– However, these aren’t tectonic shifts. So no need to fasten your seat belts.
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Opportunity for mortgage borrowers
– For some, this might be a perfect opportunity to borrow.
– If you were guilty of fence-sitting, perhaps it’s time to climb down and make a move.
So, what’s my hot take on this whole situation? Well, The Fed, playing the role of a stern parent, has decided that it’s time we stop expecting oversized candy bars and learn to appreciate life’s small treats. Put simply, don’t expect a shocking twist in the mortgage rates tale. The real estate market might just feel like a roller-coaster ride going smoothly on flat land. Investors, get your spy glasses out and keep ’em fixed on the Fed. As for the fence-sitters, it’s time to shake off that inertia and make a leap. You can no longer afford to be prisoners of your own hesitations!
Original article: https://www.inman.com/2024/03/01/mortgage-rates-ease-for-2nd-consecutive-day-on-inflation-data/
