It’s the talk of Wall Street.  It’s the talk of millions of Americans every day.  When can we buy a house? When will mortgage rates dip so we can afford a house?  If your business is dependent on any needs of homeowners, here’s our read:

    1. MORTGAGE RATES ARE NOT GOING BACK TO 3%:  At least not anytime soon, barring a national crisis like another pandemic.  Low rats for 20 years was an aberration.
    2. MORTGAGE RATES ARE NOT GOING DOWN MUCH:  In fact, here are the forecasts from a lender and the Realtors:
      FORECASTER Q4 2024 Q4 2025
      FANNIE MAE 7.1% 6.6%
      6.7% 5.9%
      (Yahoo Finance, Aly J. Yale, June 6, 2024)
  1. THE PERCEPTION IS THESE RATES ARE HIGH: Since home buyers and sellers have 2.99% fixed in their brains, these seem like high rates when historically they are not.  The rates above are still low historically.
  2. CURRENT HOMEOWNERS ARE RATE-LOCKED:  They don’t want to sell because buying another home will increase their monthly mortgage payments and cost of living.
  3. LOW SUPPLY OF HOMES: Leads to pent-up demand and higher prices.


This is obviously not good news for any business counting on home sales for a pool of prospects for their services.  What is your strategy for the next 12 months?  It’s an ongoing discussion that we’re having with all of our clients.  Making plans now ensures a smoother sales environment during this difficult period.


Onward & Upward!