Will Next Meeting Soon Make It?

The average new vehicle transaction price remains 18% higher than pre-pandemic levels, according to Kelley Blue Book. This increase is not solely due to interest rates, as most auto buyers are finding themselves struggling with budget constraints.

In fact, the difference between an 8% and a 7.25% interest rate on a $40,000 loan amounts to only about $14 per month – a relatively small change for many buyers. Those with good credit may be able to secure slightly lower rates due to competition among lenders, while those with weaker credit profiles will continue to face double-digit rates.

Greg McBride, chief financial analyst at Bankrate, emphasizes that interest rates have a limited impact on affordability. The current rate of 5.94% is still elevated and has not significantly affected the market. In fact, many experts predict that lenders may be hesitant to make loans due to the growing number of subprime auto borrowers who are at least 60 days past due on their payments.

Will I be able to get a good rate for a car? The answer lies in factors such as credit background, vehicle price, down payment, and borrowing costs. Those with poor or thin credit will likely struggle to secure a favorable rate anytime soon, while those with good credit may get lucky.

According to Matt Schulz, credit analyst at LendingTree, banks are more interested in attracting high-quality applicants than lowering rates for all borrowers. As a result, it is unlikely that interest rates will fall significantly anytime soon.

However, there are some glimmers of hope on the horizon. If the economy were to slow sharply, delinquencies could turn into charge-offs that banks take as losses. This could potentially lead to a slight decrease in interest rates, although this scenario is far from guaranteed.

In the meantime, it's worth noting that credit card debt has reached a record high of $1.08 trillion, and delinquencies have been rising for eight consecutive years. Will interest rates on my credit cards fall? It's difficult to predict, but borrowers with good credit may be able to secure better rates in the future.

Ultimately, it's essential to focus on finding an affordable home rather than waiting for interest rates to drop. As Samana noted, 'You can always buy a house and refinance later if rates fall.' With these factors in mind, will next meeting soon make it possible for borrowers to secure better rates? Only time will tell.

Will next meeting soon make it