This was a big week for homeowners, and prospective homeowners, as the minutes of the FOMC (Federal Open Market Committee), which sets the Federal Reserve’s policy, not only left rates unchanged for the third (every other month) meeting in a row, but they forecast three rate cuts will occur in 2024. What does this mean to you?
- MORE BUSINESS: If your business is in any way tied to people selling their homes and moving, a rate cut by the Fed will lower the prime rate, which will, in turn, lower the cost of a mortgage.
- LOWER MORTAGE RATES: Right now the prime rate has been 5.25%–5.5% since July. This has resulted in a mortgage rate in the 7% range and slowed home sales.
- HIGHER MORTAGE RATES: This led to fewer people being able to afford a new home and those living in a home with a rate under 5% not wanting to move, increasing their cost of home ownership. This has kept sales of homes very low and hurt sales of new furniture and other items associated with buying a new home.
- LOWER PRIME RATE BY END OF 2024: The Fed is now predicting a prime rate of 4.6%, almost a full percentage point from where it is now, by the end of 2024.
- MORTAGE RATES BY END OF 2024: Realtor.com experts are forecasting that mortgage rates will be 6.8% on average for 2024 and 6.5% by the end of 2024.
- “MOVES OF NECESSITY” WILL DRIVE DEMAND IN 2024: People will be dealing with job changes, family situation changes and downsizing for a more affordable market, according to Danielle Hale, chief economist at Realtor.com. This means business for you.
- YOUR WEBSITE MUST BE READY: You already know that your website is your best new prospect tool after referrals and prior customers buying, so your website must be optimized and deliver leads for some sets of keyword phrases. If not, you will not cash in on the forecasted demand in 2024.
- DON’T WAIT TO GET YOUR SITE READY: That’s because the AI at Google is set up to increase your site’s rankings only after a month or more of testing. Changes today won’t be realized until February or March. Act now to be prepared for new business from these rate cuts, which some are forecasting could begin to occur as early as March.
Onward and upward!
For more information: https://detroitseocompany.com/blog/seo-facts/googles-new-page-one-requirements/