Well, even though August is vacation time for many, me included, mortgage rates have not taken a vacation from hiking higher. For the third week in a row, rates have risen bit by bit, according to Freddie Mac’s weekly survey of average rates. Yes, it makes homes less affordable, but rates rise as a result of a resilient economy. Our economy currently continues to show resilience with low unemployment and strong wage growth, keeping demand for home purchases solid.
Mortgage rates aren’t the only numbers in the housing market that are rising. New home purchase mortgage applications are up 35.5 percent for the year. The new home market is introducing new supply into the market to fill the gap in demand for homes because existing homeowners are not selling enough to meet housing demand.
Interestingly, the lack of supply of homes remains the top concern in the housing market, not the level of interest rates. There are plenty of buyers that want to get into this housing market! If you’re one of them, let’s talk. I will shop around for you to find the best financing options to serve your family, your budget, and your goals. Please reach out to me, and let’s talk about your specific scenario. Call or text me at 818.307.6072 or send me an email.
As you know, inflation is a hot-button issue, and last week the latest consumer inflation numbers came out. The CPI (Consumer Price Index) reported July inflation at 3.2 percent, slightly less than expected but still above the 1-2 percent range the Fed likes to see it in. We’re headed in the right direction, as this is the slowest pace of inflation in two years.
This week the report on Retail Sales showed numbers that nearly doubled expectations, rising by 0.7 percent. July sales were expected to rise 0.4 percent versus June’s lower-than-expected gain of only 0.2 percent in a report that proved subdued throughout.
The leading indicator for the home sales numbers, the report on Housing Starts and Building Permits, comes out this week as well. After slowing from 1.56 million in May to 1.43 million in June, housing starts in July are expected to post a limited rebound to a 1.46 million annualized rate. Permits, which slowed from 1.5 to 1.4 million in June, are similarly expected to rise to 1.46 million.
And a fun fact for you, a LendingTree study showed that more single women own homes – one in eight – than single men. In 2022 single women comprised 17 percent of homebuyers, the study said, compared to only 9 percent who are single men. So even though women statistically earn less money than men, they’re leading in home ownership, a major source of long-term wealth building. You go, gals!
