Should homebuyers lock rates in before the Fed meets?

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Should homebuyers lock in rates ahead of the Fed meeting?

A recent article from CBS News reviewed the current climate and asked mortgage experts about the upcoming Federal Reserve announcement. Their team tried to answer whether or not homebuyers should lock in their rates ahead of the meeting.

The next Fed meeting is scheduled for April 30th – May 1st with the announcement and press conference coming in the afternoon on the 1st. Market watchers aren’t expecting to see any movement in interest rates, but if Friday’s inflation report comes in extra hot or extra cool, expectations may change.

The best reason to lock in a mortgage rate is to ensure that it won’t go any higher. Aaron Cirksena, founder and CEO of the financial planning firm MDRN Capital, stated, “If you are in the process of buying a house and have already made a commitment, then I believe it would be prudent to lock in your rates at this point.”

However, when asked about the prospect of falling rates, Cirksena said, “There is always a likelihood that the Fed pivots or offers guidance in the next meeting that sends rates a bit lower.” However, given the current climate, that’s not seen as likely to happen with the current inflationary and job market conditions.

So, should you lock in a mortgage rate? The guidance remains the same as always. If you need to get into a home, you should probably consider locking your rate. If you can afford to wait or don’t need to move right away, use the time you have and take a ‘wait and see’ approach.

If you’re ready to lock in your rate or want to learn more about options, get in touch with the team at Guaranteed Rate today!

Why is the Boston condo market slowing?

A new report on the Boston condominium market showed that sales have slowed a bit in the first quarter of 2024. When comparing Q1 2024 to Q1 2023, condo sales were down by 20.5%.

What’s the issue? Nick Warren, chief executive officer and owner of Warren Residential, said, “It’s a combination of things: a combination of a limited amount of inventory, which I’m sure everybody’s talked about before, and rates rising.”

When it comes to condo prices in Boston, Q1 2024 saw a 6.1% increase in price despite slower sales. What was surprising was that the Allston area, known for affordable homes, showed a dramatic increase year-over-year.

Warren stated, “We have seen a lot of new development happen in the Allston-Brighton area over the last couple years. So, that’s why you’re seeing some of these average prices go up significantly.”

What is the most expensive listing in the U.S.?

The most expensive listing currently available in the U.S. isn’t in New York or California. It’s not even in Florida or Texas. An 87-acre estate in Friday Harbor, WA recently returned to the market and is the most expensive home listed in the country right now.

With a price tag of a cool $58 million, the property is actually discounted. It was listed last year for $75 million, but it was unable to find a buyer.

Called Halftide Farms, the estate offers three separate residences with waterfront views of the Salish Sea and Mount Baker. It also offers 650 feet of beach frontage. It comes with guest cottages, a bunk house, a game house, tennis and pickleball courts, two pools, a putting green, four ponds, and a caretaker’s residence.

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