The Rates are Falling, The Rates are Falling!!!
Mortgage rates declined further during the Thanksgiving holiday and have reached the lowest point in nine weeks. They have declined from the recent peak by more than 50 basis points (bps) and continued to improve. While housing inventory remained below the historical norm, mortgage applications have been rising in the past three weeks, which is an encouraging sign to the market. Since a home sale transaction typically takes 30 days to 60 days to close, sales could see a bounce back in December or January. The Fed could be done with raising rates, it may not start cutting rates until the end of the first quarter when clear signs of economic weakening are observed.