Navigating the Mortgage Landscape: December 2023 Rates and a Glimpse into 2024
Hey there, fellow Kansas City residents and friends! It's Carrie Beth Shouse, your go-to Realtor and proud founder of the KC Home Hub Real Estate Team. Today, I want to dive into a topic that's on everyone's minds – mortgage interest rates as we approach the end of 2023 and what we might expect in the coming year.
As a Kansas City native and someone deeply passionate about serving our community, I understand the significance of home buying and the impact that interest rates can have on our decisions. So, let's get down to business!
Current Landscape: December 2023 Rates~
As we bid farewell to 2023, the mortgage interest rates have been on a bit of a rollercoaster. But fear not! We've weathered storms before, and I'm here to provide some clarity. As of now, rates are holding relatively steady, providing an excellent opportunity for those looking to make a move.
For my clients and friends considering buying or refinancing, now could be a strategic time to lock in a favorable rate. I always emphasize the importance of staying informed, and in this dynamic market, knowledge is key.
Predictions for 2024~
Ah, the crystal ball moment – predicting interest rates for 2024. While I don't have a magic wand, I can share some insights and trends that may influence the mortgage landscape.
1. Economic Factors: Keep an eye on economic indicators. Factors like employment rates, inflation, and GDP growth play a significant role in influencing interest rates. A thriving economy could lead to a gradual increase in rates.
2. Federal Reserve's Stance: The Federal Reserve has a considerable impact on interest rates. Their policies and statements are essential to watch. A more hawkish approach from the Fed could signal a shift in rates.
3. Housing Market Dynamics: The real estate market itself plays a role. If demand remains robust and housing inventory is tight, it may put upward pressure on rates. However, external economic factors can counterbalance these market dynamics.
Per Lawrence Yun, Chief Economist for the National Association of REALTORS®-
“Mortgage rates are plunging with the news of inflation calming. Consumer prices rose by 3.2% in September, even with the rent component still showing a hefty gain of 6.7%. Non-official private sector rent data has shown a 0% to 2% rise, which, if hypothetically used in the official figures, would bring inflation down below the Federal Reserve’s desired inflation target of 2%.
The interest rate rises should be over, and the Fed will have to consider cutting interest rates seriously. In the meantime, the bond market is reacting as if the Fed will be cutting interest rates next year. Mortgage rates look to head towards 7% in a few months and into the 6% range by the spring of 2024.”
Our Commitment to You~
Jon Fultz, my esteemed business partner with a knack for marketing analytics, and I are committed to keeping our clients informed. Our divide-and-conquer approach ensures that while Jon works diligently on the backend with marketing and transaction coordination, I'm out there serving you directly, ensuring your best interests are protected.
As we look towards 2024, know that the KC Home Hub Real Estate Team is here for you. Whether you're a first-time homebuyer, a growing family looking to upgrade, or someone considering an investment property, our door is always open for a chat. We don't just sell houses; we serve the incredible people of Kansas City.
In conclusion, seize the opportunity in December 2023, and let's make informed decisions together. The journey of homeownership is a significant one, and we're honored to be a part of it with you.
Wishing you a wonderful holiday season and a prosperous 2024!
Warm regards,
Carrie Beth Shouse
