The BASE RATES (before addons for LTV, DTI, and FICO) continue to creep downward since our last posting.  Since 8/19/2024 our BASE RATES have dropped 0.25% to 0.375%.  Our current BASE RATES are beginning to dip BELOW 5.00% for FHA/VA, and CONVENTIONAL and the 15 year term …

This trend will continue based on the most recent Inflation and unemployment trends which appear to be in line with expectations.  There is a very good chance the Federal Reserve will be lowering the overnight rate charged to banks 0.25% the week of 9/16/2024 and the big question is whether or not there will be 3 or 4 more reductions in 2024 for a total Fed Rate reduction of 0.75% or 1.00% before year end.  The Fed Rate directly impacts consumer debt products (car loans, credit cards, and Home Equity Lines of Credit) and has an indirect impact on Mortgage Rates.