Rates Keep up Streak of Improvement!

Once again, happy to report that for another week the trend in mortgage rates has been one of improvement! The recent optimism in markets that inflation may be improving has led to a decrease in rates. And combined with softening housing prices, this looks to be a more favorable buying environment than we’ve seen in a little while. 

In fact, Redfin is reporting that mortgage purchase applications are up about 4 percent from just a week ago. Additionally, they’re reporting that among the 50 most populous metro areas home prices have fallen with the largest drops in some of California’s big cities.

What this means for you…if you’ve been waiting in the wings for rates to improve, now’s the time to reach out to me and let’s take a look at your specific scenario and see if now might be the right time to start looking for your next home. 

As for what else I’m watching this week…

We are waiting on an important wholesale inflation report coming out on Friday that’s likely to be of great interest to traders. After moderating substantially in October, producer prices are expected to rise 0.2 percent on the month in November and 7.2 percent on the year. These would compare with 0.2 and 8.0 percent in October which was both lower than expected. If these inflation figures come in as expected, they will point to further evidence of moderating inflation.

Immediately after the PPI (Producer Price Index) on Friday we get a look at the index tracking Consumer Sentiment. As we know, consumer buying accounts for two-thirds of the economic activity in this country so we’ll be watching to see the latest trend in consumer optimism. Consumer sentiment has been depressed but did rebound some in November’s final report. After that month’s 56.8, forecasters see no change for December.

I’m also keeping an eye on all the economic, real estate, and mortgage rate predictions for the New Year that keep coming across my desk. And one thing is for sure, they are more dramatic and varied than I think I’ve ever seen. One day the predictions I see are gloomy and the one I saw today predicted a sluggish housing market for Q1 and Q2 of 2023 with the market roaring back in 2023 thanks to pent-up demand and economic momentum.

The truth is that only time will tell and I don’t hang my hat or my business on any of these predictions. I’ve been around long enough to know that the market is always in some sort of flux and in any and all markets people are buying and selling homes. I also believe that homeownership is a long-term wealth creator, so I’m always looking more long-term than year-to-year. If you’d like to talk further about what homeownership could look like for you, please reach out! I’m always here to talk.