Friday Fun Facts – The 1651 Day Wait is Over

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It’s been 1651 days since the Federal Reserve last cut rates.

During this era of rising rates, we’ve seen:

  • Mortgage rates peak at nearly 8% in October 2023
  • Existing home sales plummet to 1995 levels
  • Home affordability hit a 40-year low

So when we got the news this week that the Fed was cutting interest rates by 0.55%, we were elated.

Not because this single interest rate will dramatically decrease overnight – but because this signals that this is only the beginning and not the end of interest rate cuts.

What to expect – more buyers, increased competition.

To help you navigate the process of buying or selling your home, please reach out to your Windermere agent.

The post Friday Fun Facts – The 1651 Day Wait is Over appeared first on Fort Collins Real Estate | Fort Collins Homes for Sale & Property Search.

Party Like It’s 2018!

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Just a few months ago most people thought mortgage rates were heading to 5% and now they are back to where they were a year ago.

 

You probably saw this week’s news from the Federal Reserve declaring that they would not raise their Federal Funds rate for the rest of 2019

 

(just three months after saying they would raise rates at least twice this year).

 

While this is big news, even bigger news for mortgage rates is that the 10-year Treasury yield just hit its lowest point since January 2018. One thing we’ve learned from our Chief Economist Matthew Gardner is that mortgage rates follow the 10-year treasury (not necessarily the Fed Funds rate).

 

Last Spring it looked like mortgage rates had bottomed out and they steadily climbed through the Summer and Fall of 2018. It looked certain that they would hit 5% around January.

 

Instead they started dropping. Now with the 10-year Treasury at a 15-month low, they just dropped a little more and they are back to where they were a year ago.

 

Great news for buyers! Party like it’s 2018!

The post Party Like It’s 2018! appeared first on Fort Collins Real Estate | Fort Collins Homes for Sale & Property Search.