What do experts say predict for the June Fed meeting?
The Federal Reserve will meet on June 11th and 12th next week, and experts are starting to make predictions about what The Fed will do and say.
Inflation has continued to stay at elevated levels, and it’s widely expected that The Fed will keep interest rates at the current levels. At one point in late 2023, it was predicted that they might be cutting rates by June. According to market watchers, any thought of a rate cut has been ruled out.
Joseph Camberato, the CEO at NationalBusinessCapital.com, stated, “I highly doubt we’re going to get a rate cut just yet. I really believe we’re finally headed in the right direction, albeit very slowly. Inflation still rose 0.3% in April, which was better than expected, but it’s still up 3.4% for the year and unemployment remains the same. The Fed is looking for it to worsen to lower rates.”
Mortgage rates inch towards 3-month lows
The national average rate for a 30-year, fixed-rate mortgage dipped again on Tuesday, and ended down 0.04% to 7.07%*. This puts the national average rate for a 30-year, fixed-rate mortgage within spitting distance of its 3-month low.
A job openings report indicated that expected open positions will be lower than expected this month. This indicates that the job market may be softening, and that was viewed positively by the bond market.
Is home inventory returning to ‘normal’?
According to recent housing market data, May 2024 marked the seventh consecutive month of an increase in overall home inventory. This means that homebuyers are entering a market with more options available than the last few years, and this could mean that prices will begin to cool off a bit quicker this year.
Ralph McLaughlin, the senior economist at Realtor.com, said, “The biggest eye-catcher for me is the fact that inventory is rising sharply. There are 35.2% more homes on the market than this time last year, an incredible trend in the direction of normality.”
In terms of the price points that are seeing the most improvement, McLaughlin said the following, “The inventory of lower-priced homes is rising faster than other segments. There are 46.6% more homes on the market in the $200,000 to $350,000 range, something inventory and price-constrained buyers will surely welcome.”
While any increase in inventory is likely welcomed by homebuyers, we’re still a long way off from pre-pandemic levels, and the housing market may take years to fully recover.
* National average rates accurate as of 6/4/24 from MortgageNewsDaily.com and are not advertised rates from Guaranteed Rate.
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