Will Santa Bring Lower Mortgage Rates to Savannah This December?
The holiday season often brings surprises, but will December deliver the gift of lower mortgage rates? For homebuyers and refinancers in Savannah and beyond, this question looms large. As a Realtor serving the downtown Savannah area and a licensed Mortgage Officer with Mutual of Omaha Mortgage, I’m here to unpack the possibilities and offer advice for navigating this uncertain market.
The Mortgage Rate Roller Coaster
In the post-pandemic era, mortgage rates have soared to levels that many buyers never expected. Gone are the days of 3% and 4% rates we enjoyed for nearly a decade. Inflation, spurred by the COVID-19 pandemic, led to significant rate hikes, leaving many would-be buyers and refinancers sidelined.
However, recent Federal Reserve actions to cool inflation have offered glimmers of hope. The Fed cut rates by 50 basis points in September and another 25 basis points in November, yet mortgage rates have stubbornly hovered near 7%, frustrating buyers who hoped for immediate relief.
December Predictions: What Experts Say
Industry experts agree: substantial relief in December is unlikely. The next Federal Reserve meeting isn’t until mid-December, and while there’s speculation about another modest rate cut, previous reductions haven’t translated into significant drops in mortgage rates. Why? Mortgage rates are tied more closely to 10-year Treasury yields than to the Fed’s benchmark rate, and recent trends show Treasury yields rising.
In fact, there’s even a chance mortgage rates could increase further if economic conditions spark more concern about inflation or market instability.
What Does This Mean for Savannah Homebuyers?
While a significant drop in rates this December is improbable, that doesn’t mean all hope is lost for prospective buyers. If rates do decrease slightly or stabilize in the mid-6% range as some experts predict, it could open a brief window of opportunity. However, waiting for rates to fall might not be the best strategy.
Here’s why:
- Rising Home Prices – Lower rates could flood the market with buyers, driving home prices higher.
- Future Refinancing Options – If you buy now, you can always refinance when rates drop. But if you wait, today’s home prices may be out of reach.
- The Savannah Advantage – Savannah’s historic charm and strong housing demand mean that delaying a purchase could mean missing out on the perfect property.
My Advice as a Savannah Realtor and Mortgage Officer
If you’re in a strong financial position and ready to buy, it’s wise to act now. Locking in today’s rates and prices ensures you don’t miss your dream home, and refinancing later can improve your financial position if rates drop.
As a licensed Mortgage Officer with Mutual of Omaha Mortgage, I can help you explore financing options that fit your budget. Whether you’re looking to purchase your first home, upgrade, or refinance, I’m here to guide you through the process.
Ready to Buy in Savannah? Let’s Talk.
Don’t let uncertainty hold you back from finding your perfect home. Contact me today to discuss your real estate and mortgage options. Together, we can make your Savannah dream home a reality—even if Santa doesn’t bring lower rates this December!
