The Fed left the interest rates the same when they met on December 13, 2023.
They also indicated they may see up to three drops in rates in 2024, since they have been moving at a pace of .25% each change – and they expect to drop a total of .75% next year.
The Fed said they expect inflation to fall to 2.4% next year, and to 2.2% in 2025. The Fed’s goal for inflation is to get down to 2%.
They have not ruled out any rate hikes, but they do not expect them at this point.
This is a continued pause after the Fed also did not raise rates in September or November 2023.
For Baltimore mortgages, this should not affect interest rates very much, especially with the Fed making no changes.
As I have noted before, mortgage rates are determined by many factors. The Fed’s continued pause in interest rate hikes could possibly be one of them, but it is generally a very small part. One lender I work with has stated that mortgage companies generally anticipate when the Fed will raise rates, so weeks beforehand, their rates and terms usually already reflect a potential upcoming hike. The same would usually happen with an anticipated drop in interest rates.
If you are thinking about buying a home in Timonium, Towson, or the Baltimore metro area, please contact me. I can connect you with a local trusted mortgage professional who along with me, can help to guide you through your mortgage options as your buy your new Baltimore home!
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