Hope you’re having a great week! Popping in to keep you updated on the latest happenings in the mortgage and housing markets. This week, the Federal Reserve’s decisions are playing a significant role in shaping the landscape.
The Fed held steady on interest rates at their meeting last week, but their announcement to pause the reduction of their treasury holdings (QT) is positive news. This move is expected to stabilize the bond market and, in turn, help keep long-term mortgage rates in check. While the Fed has slightly increased its inflation forecast for the year, they still project two rate cuts in 2025, with a potential move in June.
Freddie Mac’s latest survey shows the 30-year fixed-rate mortgage averaging down ever so slightly by .02 percent for the week. While we’ve seen some minor fluctuations in rates recently, they’ve generally held steady, which is encouraging for both buyers and sellers. It’s also worth noting that some lenders are offering slightly better rates, so shopping around remains crucial and is why working with a broker (like me!) can save you money on interest.
On the housing market front, as we welcome Spring and the spring home buying season, we’re seeing some positive momentum. Existing-home sales rose by 4.2% in February, according to the National Association of Realtors (NAR). This increase suggests a gradual recovery, driven by a combination of slightly improved inventory and relatively stable borrowing costs.
Housing inventory is also on the rise, giving buyers more options, although supply remains tight in many areas. The median existing-home sales price reached $398,400 nationally in February, reflecting continued price appreciation. First-time buyers are also entering the market, accounting for a notable portion of recent transactions.
As for this week, we’ll get the final read on the GDP (gross domestic product) for 2024, which is expected to revise slightly higher at 2.4% growth for our nation’s economy. Pending Home Sales are seen recovering by 2.9 percent in February after dropping 4.5 percent in January.
And finally, the Fed’s favorite inflation indicator, the PCE Index, is predicted to show inflation up 0.3 percent on the month and 2.5 percent on year. For Core PCE (excluding food & energy) prices, the call is up 0.3 percent and up 2.7 percent on year.
In summary, the Fed’s actions are aimed at stabilizing rates, and we’re seeing signs of increased activity in the housing market. While challenges remain, the combination of steady rates, rising sales, and growing inventory paints a picture of a market that’s beginning to find its footing.
As always, I’m here to help you navigate these market conditions. Whether you’re considering buying, selling, or refinancing, please don’t hesitate to reach out with any questions. You’re always welcome to call/text me at 818.307.6072 or send me an email.
