B
uyers are facing a dilemma: should they wait for mortgage rates to fall again or act now and worry about rates later? The latest economic data suggests the economy still has momentum, with inflation at its lowest level in nearly four years but slightly higher than expected. Mortgage rates surged last week, averaging 6.32% for a 30-year fixed-rate loan, according to Freddie Mac.

    The recent uptick in demand may not be sustainable after the rate hike. A strong jobs report and mixed inflation numbers indicate that the economy still has some heat to it. Economists expect mortgage rates to dip again, but the timing is uncertain. Rates are still lower than a year ago, when they averaged 7.57%.

    The Consumer Price Index increased 2.4% in September, its lowest level since February 2021. While this represents progress toward the Fed's 2% target, it fell short of expectations. This could lower the chances of a rate cut next month, but a reduction remains possible.

    Jobless claims rose more than expected, tempering last week's hot jobs report. The Federal Reserve will closely monitor future economic data before deciding on rate cuts in November and December. Despite current volatility, rates are expected to ease in the coming months.

    Buyers may be waiting for rates to hit a certain level before making a move, but this strategy may not be effective. With demand rising and inventory still low, buyers should consider finding a home they want and then worrying about rates later. Mortgage applications slowed down with the rate hike, but purchase applications remain up 8% compared to last year when rates were higher.