Will rates fall when the Fed announces cuts?
While yesterday’s inflation data may have pushed interest rate cuts off a bit, they’re still likely to start before the end of the year. CBS News surveyed a few mortgage industry experts to understand what will happen when the Fed does announce interest rate cuts and how far rates might drop.
Scott Haymore, senior vice president and head of mortgage capital markets and product management at TD Bank, was the most optimistic. Haymore said, “By the first quarter of 2025, mortgage rates could potentially fall below the 6% threshold, or maybe even lower.”
However, Afifa Saburi, a capital markets analyst for Veterans United Home Loans doesn’t expect rates to drop much this year. Saburi stated, “Mortgage rates won’t fall much from where they are today because the rate cuts that the Fed has penciled in are already priced in by the markets. This means that almost all of the rate relief that we would see from rate cuts is already here.”
Where are home prices dipping?
While mortgage rates might be a bit higher than everyone would like, there are a few metro areas that are seeing prices starting to come down. A few markets that were considered overpriced may have already seen prices come down. Yahoo! Finance reviewed the data and put together a list of formerly hot metro areas that have seen a home prices cool off.
The metro area with the biggest change in median list prices? Miami, FL saw an 8.2% decrease in median home price when comparing February 2024 to February 2023. The median home list price in Miami in February 2024 was $550,000. That’s still elevated, but it’s clear that Miami has cooled a bit.
Oklahoma City came in second on the list with median list prices 7.4% lower year-over-year. Cincinnati rounded out the top three with the median list price 6.4% lower year-over-year.
Which metro area in the U.S. is the best for EV owners?
A recent article from Realtor.com detailed the top housing markets for electric vehicles. The top spot on the list should come as no surprise. San Jose, CA has 4.9% of active listings rated as EV-friendly and has one charging port for every 24 EVs in the area. San Francisco came in third place with 29 EVs per charging port and 3.8% of its listings as EV-friendly.
The metro area coming in second place? Salt Lake City has 1.6% of its listings rated as EV-friendly, but only has 17 vehicles per charging port.
Boston and Washington D.C. were the only Northeast metro areas to come in the top 10. Boston came in fourth place with 1.3% of listings rated as EV-friendly and only 13 vehicles per charging port. D.C. came in at ninth place and has 1.6% of its listings considered EV-friendly, and has 19 vehicles for every one charging port.
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