The nation’s housing market continues to cool down and shift as mortgage rates seem to be trending around an average of 7.0 percent for a 30-year fixed, according to Freddie Mac’s weekly survey. The Federal Reserve continues to attempt to combat inflation and raised the Fed Funds rate once again last week at its meeting.
So, what’s all this mean for the housing market? Many buyers are taking it slow to see what mortgage rates and inventory are going to do. Many sellers are holding fast to elevated prices and homes are staying on the market for a median of 54 days.
This may sound pretty bad, but it does offer opportunities if you know how to look for them. We have more creative financing options than ever before and if you’ve had your eye on a home that’s been on the market for a while (around 54 days), the sellers may be more interested in entertaining creative offers. Of course, your real estate agent will best be able to advise you on your options. And I’d love to chat with you about all of your options around financing.
As for what’s happening this week…
As you know, this week includes Election Day. Elections can inject some unpredictability into the markets and cause volatility. Markets tend to react wildly to uncertainty. As for how this mid-term election will affect markets we’ll see over the coming days as election results solidify.
On to economic reports, the highest impact report of this relatively quiet week comes on Thursday with the Consumer Price Index. As we know, consumer inflation has been stubbornly strong, surging 0.6 percent in both September and August. October’s consensus is a 0.5 percent increase for an annual rate of 6.6 percent, the latter would match September’s 6.6 percent. Overall prices are expected to rise 0.7 percent after September’s 0.4 percent rise for an annual rate of 8.0 percent that would compare with 8.2 percent.
And finally on Friday consumer activity makes up two-thirds of our nation’s economic activity and the latest report on Consumer Sentiment comes out. Consumer sentiment has been steady at depressed levels. After October’s 59.9 forecasters, see November coming in at an even lower 59.6.
I’ll be keeping an eye on it all and reporting back to you next week!