Rates Again Improve…Is the Stage Set for Busy Spring Season?

Again this week I’m happy to report that Freddie Mac’s weekly survey shows that the trend for mortgage rates continues to improve. We saw the average rates for 30-year fixed mortgages drop by .18 percent, just this week; and the 15-year average rate fall by .24 percent!

Freddie Mac’s chief economist, Sam Khater, commented that as inflation continues to moderate it’s making room for rates to improve as well. He also said rates have reached their lowest level since September of last year. There’s no doubt this trend will boost homebuyer demand as we creep up on the Spring peak homebuying season.

My advice here, if you are thinking of purchasing this year, is to put your plan together now so that you’re able to take advantage of great opportunities – rates and home prices – when they come up. I can help you explore your options, so reach out, either by replying to this email or texting/calling me at 818.307.6072.

Putting a plan in place is especially important if you are a first-time home buyer! In a recent interview, the CFO of Rocket Companies predicted that first-time home buyers will be the drivers of the home purchase market in 2023 because of improving mortgage rates and the decline in home prices.

As for what else I’m watching this week…

The highest impact economic reports come later in the week on Thursday and Friday beginning with the latest look at GDP (gross domestic product). Fourth-quarter GDP is expected to slow to 2.7 percent annualized growth versus third-quarter growth of 3.2 percent. Seeing this prediction of positive growth again provides evidence that recession remains at bay.

As for housing marketing news, new home sales in December, which in November rose, are expected to fall slightly to a 614,000 annualized rate versus November’s 640,000. Pending home sales, which have been falling steeply month after month, are expected to fall 1.0 percent in December.

And finally, on Friday the Fed’s favorite inflation report comes out, hopefully showing further moderation of inflation. PCE inflation readings for December are expected at no change overall and up 0.3 percent for the core for annual rates of 5.0 and 4.4 percent (versus November’s 5.5 and 4.7 percent).