August Mortgage Rate Update & Should You Buy/Refi Now?

On The Market

Mortgage rates are falling, but the Fed hasn’t made any rate cuts yet. What’s the deal? We’re explaining it all in this August mortgage rate update with repeat guest and lender-friend of the show, Caeli Ridge. Caeli fills us in on today’s mortgage interest rates, why rates are moving without any federal funds rate cuts happening, what could cause rates to go even lower, and whether paying points on your mortgage makes sense in the current market.

Good news for investors: interest rates are getting into the high sixes for some rental property loans, but lower rates aren’t always a good thing. With the economy slowing down and inflation (thankfully) seeing some significant progress, unemployment is rising, and better interest rates may come at the cost of a worse economy. But this isn’t a surprise, no matter how unfortunate it is for many workers in today’s market.

We’re getting Caeli’s take on the Fed’s next moves, today’s mortgage rates, and what’s in store for future rates. This is crucial commentary from a lender working on loan products for investors in today’s exact interest rate environment, and hearing her may change your next investing move. Dave also gives his opinion on the mortgage rates we could expect to see next year and whether buying or refinancing even makes sense now.

In This Episode We Cover

August 2024 mortgage rate updates and where investor interest rates are right now

Why mortgage rates have been falling WITHOUT the Fed lowering their rates

Paying mortgage points and whether or not it’s worth it if rates are continuing to fall

The BIG uptick in refinancing and purchasing activity since rates began to fall

Where Dave thinks mortgage rates could be next year

And So Much More!

Links from the Show

Join the Future of Real Estate Investing with Fundrise

Join BiggerPockets for FREE

Find Investor-Friendly Lenders

See Dave at BPCON2024 in Cancun!

Dave's BiggerPockets Profile

Caeli's BiggerPockets Profile

With Mortgage Rates Falling, When Should Investors Refinance?

Get Dave’s Mortgage Point Calculator

Analyze Real Estate Like a Pro with “Real Estate by the Numbers”

Jump to topic:

00:00 Intro

00:54 Mortgage Rate Update

04:43 Powell Talks, Rates Change

09:19 Bad News if Rates Fall

10:27 What Else Affects Rates

14:04 “Points Options” Improve

15:47 Advice for Investors

18:20 Dave’s Take on Future Rates

Check out more resources from this show on BiggerPockets.com and https://www.biggerpockets.com/blog/on-the-market-246

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