Hope you had a fantastic Labor Day! As we head into fall, we see that the housing market remains strong thanks to a growing economy and continued purchase demand. Home prices remain stable, but thankfully inventory is improving modestly.
As for mortgage rates, the latest survey by Freddie Mac reports that average rates for both the 15-year and 30-year have remained steady.
What I’m watching this week…
This week is of course a holiday-shortened week with very little high impact data set for release, yet still many factors, nationally and geo-politically that could affect markets.
Worries around the spread of covid variants and vaccine efficacy plagued markets on Tuesday, as markets questioned the pace of economic recovery.
Wednesday I’ll be keeping an eye on the latest 10-year Note Auction for the pace of demand and if the yield percentage shifts. It’s at a level now that could turn into a ceiling or a floor, so we’ll have to see how it shakes out. As we know, often mortgage rates will follow the same trajectory as the 10-year yield percentage and right now we’re sitting near 1.37.
Also on Wednesday we get a look at the Beige Book, an anecdotal report on the health of the economy put out by the Fed. This is not generally a huge market moving report but very interesting because it is used by the Fed as one aspect of their policy decision making.
Friday we get an important report on wholesale inflation. Producer prices have exceeded the high estimates in each of the last five reports. Following 1.0 percent monthly increases for both the overall and core rates in July, August’s expectations are increases of 0.6 and 0.5 percent respectively. Respective annual rates are seen at 8.3 and 6.6 percent. Any surprises here could cause rates to rise.
What all this means for you..
As rates remain low and steady and inventory levels loosen up, it may be an ideal time to jump on purchasing your next home, especially if all the craziness in the housing market has kept you on the sidelines. Also, opportunities still exist to refinance and get rid of mortgage insurance, pay off higher interest debt, or take cash-out to make improvements to the home you’ve decided to keep for a while longer. Reach out today and let’s discuss your options! Call or text me at 818.307.6072, or simply reply to this email.
I look forward to speaking with you soon!