The latest mortgage rates have risen above 7% for a 30-year fixed-rate loan, after expectations a few months ago that rates could drop into the low 6% or high 5% range, due to overall economic uncertainty, inflation concerns, and the Federal Reserve’s hesitation as it contemplates what path to take. Various economic indicators have a bearing on the real estate and mortgage industries, so experts monitor GDP growth projections and inflation rates from different sources like the Bank of America, Goldman Sachs, and the Atlanta Fed. There is some divergence in these projections, ranging from 1% -3%, but most point toward continued economic growth, albeit at a slower pace compared to previous quarters. Will the Fed meet its target of 2% to bring down mortgage rates or is inflation stalled at 3%? The stock market’s performance is also seen as a forward-looking indicator of economic health. Despite challenges in certain sectors like tech and AI, does the overall market performance suggest guarded optimism about the future of the economy?

While higher interest rates have priced some potential buyers out of the market, it has also led to an increase in housing inventory. As a result, home prices have come down slightly. However, when interest rates inevitably decline, demand and prices are likely to rebound. One trend becoming more prevalent involves older homeowners selling their properties to cash in on the equity built up over the years, contributing to the increase in housing inventory. Are there other strategies homebuyers can consider in a high-interest rate environment?

Ongoing lawsuits against the National Association of Realtors (NAR) and real estate companies could lead to significant changes in commission structures and the way real estate transactions are conducted. Is it more important than ever to find professionals who can adapt to the shifting marketplace while offering reasonable prices for their services? This week, Jeff’s guests include:

– Jamal Ransford (EPM) discusses a down payment assistance program that allows buyers with a lower credit score to get a grant, making homeownership more accessible.

– Charles Giscombe (United Security Financial) explains different loan products and strategies for navigating the high-interest rate environment.