Happy New Year’s salutation is spot on for homebuyers in 2024!
The U.S. Economy Enters 2024 Full of Growing Optimism.
Interest rates have been dropping, inflation has been declining, positive GDP growth is expected, the labor market remains resilient, and the desire to own a home is stronger than ever! But like the Bob Dylan song, “The Times They Are a-Changin’.” The new inflation numbers last week brought an early Christmas gift and it seems that the U.S. economy is finally normalizing. CPI, an oft-cited measure of inflation, peaked at 9.1% in June 2022. It fell to 3.1% in November 2023, the second-lowest mark in 32 months. The CPI number has fallen in 14 of the last 17 months. According to the Wall Street Journal, the Fed’s “preferred” inflation measure equaled 2.6% in November, getting close to the often-mentioned 2% target. “Many economists now say the economy will likely cruise to a so-called soft landing in which inflation returns to the Fed’s target without a recession,” according to the WSJ article. “The U.S. economy defied predictions that it would tip into recession in 2023, largely because inflation fell so much while consumers kept up their spending despite the Fed’s aggressive tightening policy, which pushed interest rates up to the highest level in 22 years.” And this latest month of data is the strongest indication yet that the Fed will be able to strongly consider cutting rates in 2024. Don’t expect a return to historically low interest rates, 2-3% mortgages becoming commonplace. But, according to the WSJ article, the Fed is “winning its fight over inflation, boosting American spirits and offering greater reassurance that the U.S. economy can avoid a recession while bringing prices under control.” That’s very optimistic news for homebuyers as we enter 2024.
So, yes, a cheerful greeting fits the moment, and I’m ready to help you seize the day to turn more home seekers into homeowners in 2024!
Joanne Brenenstuhl is a licensed Mortgage Lender in the state of Florida, who specializes in first-time homebuyers, investors and vacation homes. However, she is also an expert on all facets of lending product to help as many people as possible to become homeowners. She can be reached at 239-470-1711, [email protected] or
www.mortgageprojo.com.