I hope your week is off to a great start! After a bumpy few weeks, the market has found some welcome calm, so let me share what is behind it and one practical tip for homeowners.
Here’s Where Rates Stand
Mortgage rates improved sharply last week after touching their highest levels of the year. Freddie Mac’s weekly average held steady, and daily rates have eased a bit further since, sitting near their lowest point in more than three weeks. The reason is a surprise. Worries about debt and stress in the tech and AI sector sent investors toward the safety of bonds, which tends to pull mortgage rates lower. This week the bond market has simply paused, which is a healthy thing after such a quick move.
What the Fed is Signaling
Last week’s inflation report came in a touch hotter than hoped, yet bonds finished the day calm. One Fed official even suggested only one more hike may be needed, and the odds of a hike at the October 27 and 28 meeting remain low. None of this is a promise, but it is a more encouraging tone than we had a few weeks ago.
For Buyers, Competition is Cooling
Pending home sales fell 7.3 percent in September, far worse than expected, because high monthly payments are still squeezing demand. Builders also broke ground on fewer homes than forecast. Fewer buyers at the table means more room to ask for seller credits and rate buydowns, not just a lower price.
For Homeowners, Plan for the Unexpected
A new LendingTree analysis found that savings paid for about three-quarters of home improvement projects. Those jobs were small, with a median cost under $2,000. The bigger jobs, with a median near $8,000, were more often funded with home equity loans. Routine upkeep alone averages about $1,400 a year, and more for homes built before 1940. Bigger projects like roofs and heating systems cannot wait long, so I encourage you to keep a repair cushion.
Buying an older home? Plan to have cash left over after closing, not just the down payment. If a big project comes up, borrowing against your equity can make sense with stable income and a clear repayment plan, but it does put your home on the line, so let’s talk it through first.
I invite you to call or text me at 818.307.6072 or simply send me an email. You know I’m always happy to run numbers for you.
