State of Rates — State of Rates

November 3, 2023

Latest Market Commentary.

Welcome to a new month and a new vibe in the world of interest rates and real estate. This week, we witnessed some exciting developments that kept us on our toes. The main highlights included the highly anticipated FOMC (Federal Open Market Committee) meeting and rate decision on Wednesday, followed by the release of the October Jobs report on Friday.

Wednesday was a pivotal day, as the Federal Reserve delivered the message that rate watchers had been eagerly waiting for: there would be no rate hike in November. What's even more encouraging is the forward guidance provided by the Fed, which was more positive than what we've seen in the recent past.

Fast forward to today, and the job report has added to this optimism, with 150,000 jobs added in October, although the market had expected 180,000. While it might seem like a poultry figure compared to the lofty expectations, it's important to remember that every job counts in the grand scheme of economic recovery.

The cumulative impact of these developments has made this week one of the most significant we've seen since early March. Interest rates have dropped by over half a percentage point, and in some cases, even more. It's a trend that has left many wondering about the path ahead.

Predicting the future of interest rates is a challenging task, and as always, the data we gather over the next few weeks and months will provide us with more insights. However, there's a growing possibility that we have finally witnessed the peak in interest rates, at least for the time being.

Should I Lock or Float?

While we are still biased towards locking at application, there are some great opportunities to float your rate in search of better rates. If you’re closing is 30 days or more out, you may consider watching how the market plays out over the next few weeks.