Since the Federal Reserve (Federal Open Market Committee) cut the federal funds rate by 0.50% on Wednesday, I’ve been getting calls and emails from borrowers and potential borrowers asking if mortgage rates dropped, too.  I tell them that 30-year fixed mortgage rates are controlled by the markets, and have already dropped over 1.5% from the high last year, and they actually have moved up a little since the Fed just started cutting the short-term federal funds rate by 0.50% from the high – their first rate cut in over 4 years.

However, as for the future, we know from the Federal Reserve Board’s own projections that they plan to cut the federal funds rate significantly over the next 2 years – about 2.0% more than they’ve already cut:

https://www.federalreserve.gov/monetarypolicy/files/fomcprojtabl20240918.pdf

As I mentioned in my video last month, mortgage rates are headed lower longer term, and if you have a high mortgage rate from the recent past, you may want to refinance now, but expect to refinance again in the next couple of years as rates move lower:

If you’re a buyer and find a home you love and can qualify for, it’s best to buy now and refinance later to lower your housing costs, rather than waiting until all the buyers waiting for lower rates to qualify for that home join the market.

Higher 2025 Conforming Loan Limits

The new 2025 conforming loan limits won’t be released until November, but we have a number of lenders who have just announced that they will honor higher expected loan limits up to as high as $1,205,250 for Hawaii – up from $1,149,825 – for conventional loans and VA loans.  If you have a buyer needing a conforming loan above the previous $1,149,825, we’ll be happy to help them get a conforming loan using the projected higher 2025 limits.

Please let us know if we can help anyone you know with their home financing needs.