Hey there. I wanted to touch base and share a quick update on what I’m seeing in the mortgage and housing markets. It’s been a bit of a rollercoaster lately, but thankfully, we’ve seen a welcome period of calm settle in after some significant market movements.
It was certainly reassuring to the markets to hear from voices like JPMorgan Chase CEO Jamie Dimon and Boston Fed President Susan Collins last week. Their comments about the Federal Reserve being prepared to step in and stabilize the bond market if needed really helped to soothe some of the volatility we experienced. Treasury Secretary Bessent also echoed this sentiment, which collectively has contributed to a more stable environment, with both long-term Treasury yields and mortgage rates easing a bit from their recent peaks.
Interestingly, while some of the “soft data,” like consumer sentiment surveys, have shown some uncertainty, the “hard data” – things like inflation, jobs reports, and GDP – continue to look solid. The recent strong retail sales report further underscores that consumer spending is holding up for now. Of course, we’re keeping a close eye on whether that soft data might eventually impact the harder economic indicators, which could influence the Fed’s future decisions on interest rates.
Speaking of rates, Freddie Mac reported that the 30-year fixed-rate mortgage averaged slightly higher last week. While this is a slight increase from the previous week, it’s important to note that rates have remained below the seven percent mark for the thirteenth consecutive week. What’s even more encouraging is that purchase application demand is significantly higher than it was at this time last year, suggesting a healthy start to the spring homebuying season.
On the ground, we’re also observing an interesting trend: more sellers are offering concessions to attract buyers. In the first quarter, nearly 44% of sellers provided some form of incentive, whether it’s money towards repairs, closing costs, or even mortgage rate buy-downs. This is particularly prevalent in certain markets and can create some fantastic opportunities for buyers.
So, what does this all mean for you? It means that while the market continues to evolve, there are both stabilizing factors at play and emerging opportunities to explore. Whether you’re looking to buy, sell, or refinance, understanding these dynamics is crucial.
As always, I’m here to help you navigate these waters. Don’t hesitate to reach out if you have any questions or want to discuss your specific situation. Let’s work together to make your homeownership goals a reality.
