Well, after taking a breather for a few weeks, rates surged last week following shifting inflation expectations and the change in Fed policy regarding inflation. According to the latest survey of averages by Freddie Mac, rates for the average 30-year fixed-rate loan are up .55 percent.
We’re also continuing to see signs of the tight housing market loosening up, yes, the silver lining for buyers that have been sitting on the sidelines. Reports show we’re now seeing the most price drops happening since 2015 for homes on the market now. Even the number of offers facing competition is at its lowest point since February of 2021.
So, yes, there are some factors decreasing home affordability, but others are making it easier. If you’ve been waiting for the right time to jump back into the housing market, you may want to get ready. Reach out and we can make sure to get you pre-qualified for your mortgage and go over all of your options and make a plan that’s best for you.
As for this week, I’ll be watching…
• With the holiday-shortened week as the nation observed the Juneteenth holiday yesterday, markets and banks were closed. Happy Juneteenth!
• The latest numbers for both existing home sales and new home sales come out.
• As for Existing Home Sales – April resales fell only slightly more than expected to a 5.61 million annualized pace though supply on the market did improve slightly. The consensus for May resales was a further decline to 5.40 million. The actual sales figure came in at 5.41 showing continued slowing.
• Sales for new homes broke substantially lower in April to a 591,000 annual rate, signaling the end of the great pandemic housing boom. May’s expectations are further slowing, but only slightly, to 587,000.
• Throughout the week I’m keeping an eye on the reaction by markets to the slew of Fed Members, including Fed Chair Jerome Powell speaking, and no doubt inflation and what the Fed’s doing about it will be something they’ll be addressing, especially following their greater than expected increase in the Fed Funds Rate, by .75 percent.
