FEDERAL RATE CUTS ARE EXPECTED IN 2024

Federal rate cuts are looking promising for the new year. Investors Business Daily writes, "Markets saw 78% odds that the Fed's first rate cut will happen by the May 1 meeting." Accordingly, Reuters puts the probability of interest rate cuts starting in March next year at 77%. What does that mean for homebuyers? While the Federal Reserve doesn’t decide on trending fixed mortgage rates, mortgage lenders look at the Fed’s moves and their predictions for the economy, along with other factors like the 10-year Treasury yield, and inflation.

With that being said, your best bet for the lowest possible mortgage rate is to maintain a solid credit score by keeping your debt low and paying your bills on time.