The Fed kept interest rates steady
As expected, Federal Reserve Chairman Jerome Powell announced that interest rates will stay at their current levels. Powell also mentioned how inflation continues to be a challenge and has kept the Fed from cutting rates.
What was surprising was that Powell mentioned twice during his press conference that the Fed didn’t see a need to increase rates further. Powell also announced that the Fed would start to ease the shrinking of its balance sheet. The main tool of the Fed is interest rates, but they can also liquidate or acquire assets to stimulate or cool the markets. They’re still selling off assets, but they’ll go from $60 billion per month to $25 billion per month.
Most markets reacted positively to the news despite the lack of a clear timeline for rate cuts.
How did mortgage rates react to the Fed?
The national average rate for a 30-year, fixed-rate mortgage ended Wednesday down 0.1% to 7.41%*. The bond market saw a rally during and after Chairman Powell’s press conference, and that lead mortgage rates to end lower for the day.
The next key data point we’ll get is Friday’s employment report. Jobs data will provide an indication of whether or not we’re still seeing a hotter job market in the face of high interest rate or not.
Is the Florida real estate market cooling off?
According to recent home inventory data, the Florida housing market has seen a surge in new and existing homes.
As of this week, Florida has 5,600 active listings that include the word ‘motivated’ on Zillow.
Homes for sale in March 2024 were on the market for an average of 57 days before finding a buyer. Two years ago, homes were selling in only 24 days in Florida.
Redfin’s chief economist, Daryl Fairweather, stated, “Florida is very unique. It was one of the only markets that actually sustained price growth after interest rates went up, so I think this correction is a bit overdue.”
Prices have yet to slide dramatically, but this could be one of the early signs of the housing market flipping from a seller’s market to more of a buyer’s market in the coming months.
* National average rates accurate as of 5/1/24 from MortgageNewsDaily.com and are not advertised rates from Guaranteed Rate.
Pre-Approval
in 10 minutes?
in under 10 minutes. Grab a few important documents to get started.
- Tax Returns
- Copies of W-2s (or 1099s for independent contractors,
freelancers and the self-employed) - A payroll stub
- A bank statement
- Loan obligation info (student loans,
auto loans and credit cards)
Applicant subject to credit and underwriting approval. Not all applicants will be approved for financing. Receipt of application does not represent an approval for financing or interest rate guarantee. Restrictions may apply.
All information provided in this publication is for informational and educational purposes only, and in no way is any of the content contained herein to be construed as financial, investment, or legal advice or instruction. Guaranteed Rate does not guarantee the quality, accuracy, completeness or timelines of the information in this publication. While efforts are made to verify the information provided, the information should not be assumed to be error-free. Some information in the publication may have been provided by third parties and has not necessarily been verified by Guaranteed Rate. Guaranteed Rate its affiliates and subsidiaries do not assume any liability for the information contained herein, be it direct, indirect, consequential, special, or exemplary, or other damages whatsoever and howsoever caused, arising out of or in connection with the use of this publication or in reliance on the information, including any personal or pecuniary loss, whether the action is in contract, tort (including negligence) or other tortious action.
