In a significant development today, December 13, 2023, the Federal Reserve Chair announced that the central bank will maintain its benchmark interest rate, indicating that the Fed’s rate is ‘likely at or near its peak.’ (Wall Street Journal)

After a 2 day meeting, most Fed officials are projecting three interest rate cuts for 2024. The unanticipated decline in inflation this year has led the Fed to have a more optimistic view of the economy in 2024.

According to the Washington Post, the Dow Jones Industrial Average reached a new all-time high, closing at 37,090, up over 500 points for the day or 1.4 percent. The Nasdaq and the S&P 500 are also experiencing gains. Bloomberg explained today that this jump in the markets recoups losses incurred during the period of the Fed’s rate hikes.

What does this mean for you? If you are thinking about buying or selling a home or a real estate investment, this is fantastic news for you! With interest rates on the decline, buyers will have significantly higher buying power and more homes will come on the market. As (1) inflation is effectively being curbed, (2) a recession is not on the horizon, and (3) interest rates are are projected to be cut 3 times in 2024, the outlook for anyone looking to buy or sell real estate in 2024 is very positive.

Rates have already started dropping and 2024 will be a great bounce back year. I haven’t seen rates quite this low in a long while. Below are some rates as of today from one lender:

Jumbo ARMS

5/1 6.75%

7/1 6.875%

Jumbo 30 year fixed

7% (.25% cost for the rate)

7.125% (no cost for the rate)