I hope your week is going well! It has been a busy one in the markets, so let me share what happened and what it means for you.
The good news first: Freddie Mac’s weekly average slipped for a third straight week, and the 15-year edged down too. Rates are still close to a full point above where they were a year ago, but they are well below the early October peak. Markets cheered the election results, since a split Washington makes huge new spending packages less likely, and oil dropped by more than $8 a barrel, which eases inflation worries.
Then came Tuesday: October inflation landed a bit hotter than expected, and daily mortgage rates jumped about an eighth of a percent, the biggest one-day rise in over a month. This morning, comments about Iran sent oil and bond yields up again. The trend is better, but the road will be bumpy. Wholesale inflation and existing home sales are both on the calendar, so expect more movement.
Why lower rates alone will not fix everything:Realtor.com found that even if rates fell by more than a full point, a typical homeowner would still pay nearly 62% more each month to buy a median-priced home. More than three-quarters of homeowners also hold a rate lower than today’s, which keeps many from listing. At the same time, first-time buyers are just 22% of purchases, and 30% of repeat buyers pay cash. A record 10% of first-time buyers did too, often with inheritance or family help. In a market this competitive, a strong preapproval helps your offer stand out.
Something close to my heart: J.D. Power found that 66% of younger borrowers want to handle routine tasks digitally, yet 49% wished their lender had been more involved. Apps can move paperwork. They cannot explain your options or calm your nerves on closing week. That is my job, and I love it.
My best tip: If you are on the fence, let’s talk through your options, including lower down payment programs and whether adjustable-rate loans (a growing trend) fit your situation. A quick conversation can save you real money and stress.
I invite you to call or text me at 818.307.6072 or simply send me an email. I am always happy to run numbers for you and/or your clients.
