Well, it’s been another interesting week in the world of mortgages and real estate, hasn’t it? As we navigate the spring buying season, I wanted to share a quick update on what’s been happening in the market and what it might mean for you, whether you’re a current homeowner, a prospective buyer, or a valued referral partner.
We saw a fair amount of volatility with interest rates last week, bouncing around as the market reacted to ongoing tariff uncertainties. It’s reassuring to see the 10-year Treasury Note hovering around 4.30 percent after reaching a high of 4.60 percent earlier this month, suggesting some stability for now. In fact, Freddie Mac reported the average 30-year fixed-rate mortgage dipped slightly by .02 percent last week, a welcome sign that things aren’t drastically escalating.
Interestingly, despite some economic jitters, the housing market showed some surprising strength. New home sales in March surged, hitting their highest level since September of last year. It seems that a slight dip in mortgage rates and some attractive builder incentives, particularly in the Southeast part of the US, gave buyers the nudge they needed.
On the other side of the coin, we’re also seeing some shifts in the resale market. While national home prices are still up slightly year-over-year, the pace of growth has slowed, and in some major metro areas, prices are actually seeing a bit of a dip. This could present opportunities for buyers who have been patiently waiting. It’s also worth noting that while sellers are still seeing profits, those margins have come down from their peak, reminding us that the market is continuing to normalize.
Looking ahead, next week brings some important economic data releases, including the Fed’s preferred inflation measure and the April Jobs Report. These numbers, along with any news on the tariff front, will likely continue to influence interest rates and the overall market sentiment.
Here’s what I’m expecting to see…New job growth may be slowing, with employers wary of adding costs. The consensus sees jobs up 130K versus 228K in March, with the jobless rate flat at 4.2 percent. As for the Fed’s favorite inflation indicator – the PCE Index – it’s expected to remain flat.
My takeaway for you is this: the housing market is dynamic right now. There are opportunities, but it’s more important than ever to be strategic. For sellers, pricing your home thoughtfully for the current market is key. For buyers, now might be a good time to explore your options and negotiate. And for everyone, staying informed is crucial.
As always, I’m here to help you make sense of it all and guide you through your real estate finance journey. Please don’t hesitate to reach out if you have any questions or want to discuss your specific situation. As always, you can send me an email or text/call me at 818.307.6072.
