Hope you’re having a great start to May! Welcome to Wednesday. I wanted to touch base with a quick update on the mortgage market and what some of the recent economic news means for you, whether you’re a current homeowner, thinking of buying, or a valued referral partner.
We’ve seen some encouraging movement in interest rates lately. For the fourth week in a row, rates have shown improvement, and the average 30-year fixed-rate mortgage dropped by .05 percent, even dipping below the first quarter average. This is welcome news after the volatility we experienced in April!
Speaking of April, there were a few interesting economic headlines. The first quarter GDP showed a surprising contraction, largely due to a surge in imports ahead of anticipated tariffs. While this initially caused some market jitters, the underlying feeling is that this is a temporary blip, and we should see a rebound.
On a brighter note, inflation continues to cool, with the Fed’s preferred measure, core PCE, hitting its lowest level in four years at 2.6%. Lower inflation generally bodes well for bonds and, consequently, interest rates. We also saw pending home sales jump significantly, suggesting that as rates ease even slightly, buyers are ready to jump back into the market. This aligns with reports that many younger renters are eagerly waiting for more favorable rates before making a move towards homeownership.
Looking ahead, all eyes are on the Federal Reserve meeting this week. While a rate cut isn’t expected just yet, there’s growing anticipation that they might signal a potential cut in June. This could create further positive momentum for mortgage rates.
It’s interesting to see how the market is evolving. Many first-time buyers, particularly Gen Z and Millennials, are considering different paths to homeownership, like co-buying or looking at fixer-uppers, and even being open to relocating for affordability. This highlights the need for flexible financing solutions and creative approaches, something I’m always here to discuss with you.
As always, I’m here to help you navigate these market shifts and find the best mortgage solutions for your individual needs. Whether you’re looking to refinance, purchase your first home, or explore investment properties, please don’t hesitate to reach out. And to my referral partners, thank you for your continued trust – these positive trends are creating more opportunities for our clients.
