Well, it’s been another interesting week in the mortgage world! As we head into the spring homebuying season, things are definitely picking up, and it’s essential to stay informed.
First off, let’s talk rates. We saw a slight uptick this week, a bit of a pause after weeks of downward movement. This isn’t unexpected. Global factors like tariff uncertainties and Germany’s spending plans are causing some market jitters. Remember, when governments spend, bonds react, and that impacts our rates. We also had the CPI (Consumer Price Index) report come in lower than expected, which usually signals good news for bonds, but the details suggest potential for higher PCE Index – the Fed’s favorite inflation indicator – so the market is a bit hesitant. It’s a bit of a tug-of-war between global forces and domestic data right now.
On the bright side, Freddie Mac reported the 30-year fixed-rate mortgage averaging .13 percent lower, a nice drop from the week prior. This has really sparked activity! Refinance applications are up, hitting their highest point since December, and overall mortgage applications are climbing too. The MBA (Mortgage Bankers Association) also confirmed this trend, noting applications are up significantly, with purchase applications also on the rise. We’re seeing more first-time homebuyers entering the market, which is fantastic! They’re still a dominant force, even with some fluctuations, and we’re seeing a lot of Millenials and Gen Zers making moves.
It’s worth noting that first-time buyers tend to have lower credit scores, down payments, and loan amounts compared to repeat buyers. If you’re a first-time buyer, don’t let these numbers intimidate you! There are many programs and strategies we can explore to make homeownership a reality.
Looking ahead, keep an eye on the JOLTS report for a look into whether the job market is cooling or not, which is critical to any future Fed moves. I’m also watching the news on tariffs or Germany’s budget. We’ll also get a look at wholesale inflation with the PPI (Producer Price Index), which is expected to ease off slightly after an ugly January report. The consensus looks for PPI up 0.3 percent on month and up 3.4 percent on year in February after rising 0.4 percent and 3.5 percent in January. These factors will continue to influence market trends. And remember, the Fed’s decisions will play a crucial role as well.
As always, I’m here to help you navigate these ever-changing waters. Whether you’re a first-time buyer, looking to refinance, or a referral partner, please don’t hesitate to reach out. Let’s discuss your goals and find the best path forward.
