Thank you Jerome Powell

Jim Porter 09/20/2024

The FED made a 50 basis points move in the right direction this week.

Thank you Jerome Powell Jim Porter 09/20/2024 The FED made a 50 basis points move in the right direction this week.


Thank you Jerome Powell

Jim Porter 09/20/2024

The FED made a 50 basis points move in the right direction this week.

After 11 rate increases in a row since early 2022, the Fed was expected to go only 25 basis points, but realized they were behind the curve and had the guts to go 50.

Keep in mind folks, mortgage rates have been coming down for three weeks in a row and the yield on the 10-year treasury is at 3.6% this week after hitting 4.5% back in late June.

VA and FHA loans have been available with a five-handle for a couple weeks, and with some discount points paid and high FICO scores some people have been able to lock in at 5.875% for conventional Fannie- and Freddie-conforming mortgages.

Mortgage rates are not going to drop any further overnight, but this is a very positive sign that a downward trend is happening and 2025 will be much better for Realtors, loan officers and homebuyers.

Jim Porter, NMLS No. 276412, is the branch manager and senior loan adviser of Solano Mortgage, NMLS No. 1515497, a division of American Pacific Mortgage Corporation, NMLS No. 1850, licensed in California by the Department of Financial Protection and Innovation under the CRMLA / Equal Housing Opportunity. Jim can be reached at 707-449-4777.

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