Hope you’re enjoying a beautiful summer week! We’re happy to see the sun and have some warm weather after lots of rain here. I wanted to share a quick update on what’s been happening in the housing and mortgage markets. It’s been a bit of a mixed bag lately, with some interesting shifts, and I always want to make sure you’re in the know.
The big news this week is that mortgage rates have continued their downward trend, hitting their best levels in nearly a month. The 30-year fixed-rate mortgage is trending a little lower, which is a welcome sight, especially compared to where we were just a year ago. This is largely thanks to a bit of a party in the bond market, where prices climbed and yields dropped. It’s not a massive drop day-over-day, but every little bit helps.
Now, on the economic front, it’s a bit more of a tug-of-war. We saw some unexpected slowdowns in the labor market, with fewer jobs being added than anticipated, and unemployment claims at a four-year high. This, along with a dip in the services sector, signals some caution. However, there’s a bright spot with the Atlanta Fed’s GDPNow model estimating a strong 4.6 percent growth for the second quarter, suggesting that fears of a recession might be a bit overblown for now.
We’re also keeping a close eye on the Consumer Price Index (CPI) later this week, which will give us more insight into inflation. Headline inflation is expected up 0.2 percent on month and 2.5 percent on year in May versus a rise of 0.2 percent and an increase of 2.3 percent on year in April. This is the key report for the week, as everyone wants to know how tariffs are affecting prices.
We’ll also get a look at Wholesale Price trends in the PPI (Producer Price Index). The consensus sees PPI up 0.2 percent on month in May and up 2.6 percent on year after a decrease of 0.5 percent on month and an increase of 2.4 percent on year in April.
What does all this mean for you? Well, with rates inching down and inventory improving, we’re seeing a definite shift towards a home buyer’s market. For the first time in a long time, sellers are outnumbering buyers significantly. Houses are sitting on the market longer, and while prices are still rising slightly, sellers are starting to realize they might need to be more flexible. This means there could be some real opportunities out there for those looking to buy or even make a move!
Whether you’re a current homeowner, thinking about buying, or a referral partner helping clients navigate these waters, understanding these dynamics is key. My goal, as always, is to be a reliable resource for you. I’m here to chat about what these market shifts could mean for your specific situation, answer any questions you have, or simply be a sounding board for your financial goals related to homeownership.
Don’t hesitate to reach out!
