Just wanted to give you a quick update on the mortgage market. Just like the drive to grandma’s house for Thanksgiving, it’s been a bit of a bumpy ride lately, but the good news is that rates seem to be stabilizing after that spike we saw in September.
Here’s the scoop:
— Rates are holding steady: We’re still seeing a bit of a sideways dance, but those scary new highs haven’t materialized (yet!). The 10-year Treasury yield is the key player here, and it’s been hanging out below 4.50%. Keep an eye on that!
— Economic mixed signals: It’s a bit of a tug-of-war out there. We’ve got some weak spots in manufacturing, but the job market is still strong. And, of course, inflation is still a concern. The Fed is walking a tightrope trying to balance it all!
— Housing news: New home construction has slowed down a bit, but there’s some optimism on the horizon. As for new home sales, they’ve fallen back to a 610,000 annual rate in October after rising to 738,000 in September from 709,000 in August. Buyers were lured by lower mortgage rates in September, but rates ticked up again in October and continued higher in November.
— Housing affordability: The National Association of Home Builders (NAHB) is pushing for some changes that could make building more affordable. Think less red tape and lower costs! Wouldn’t that be nice?!
What’s next?
Thanksgiving is just around the corner, so things might be a bit quiet this week. 🦃 Markets will, of course, be closed on Thursday and half of Friday. I’ll be keeping an eye out for the Personal Consumption Expenditure Index (PCE) – the Fed’s favorite inflation indicator.
Inflation is predicted to be up 0.2 percent on the month and up 2.3 percent from a year ago. The persistence of monthly core PCE increases like this is giving investors concern that the hoped-for Fed rate cut won’t materialize in December.
Thinking of buying or refinancing?
Now might be a good time to chat! With rates holding steady, it’s a good opportunity to explore your options. Whether you’re looking to buy your dream home or refinance your current mortgage, I’m here to help you navigate the market.
Give me a call or shoot me an email or text anytime. Let’s grab a coffee (virtual or in-person!) and talk about your goals. ☕️
Also, I want to wish you and yours a Happy Thanksgiving! I’m grateful that for two decades, I’ve had the honor of working with wonderful people like you! Thank you for your continued support.