Last week was relatively quiet for rates. This week could be volatile with the jobs report. Buyer sentiment is at an all-time low, but with rates dropping and inventory levels climbing, it could be a great time for opportunistic buyers. We are using the temporary buydown to lower rates as much as 3% for the first year.
Data Check:
Applications: Applications up 0.8% this week, three weeks in a row of improvement. (MBA)
Inventory: 634K homes on the market. Up 2.2% last week and 38% from last year. Inventory growth is slowing. (Altos)
Price reductions: Up to 36.9% of active inventory. Up another 0.5% last week. (Altos)
Rates: Rates remain around 7%. (Mortgage News Daily)
We continue to see local markets diverge in terms of supply and demand.
For Buyers:
Inventory grew again, and rates remain steady. If inventory growth stalls, prices may increase. Now could be a strategic time to buy.
For Sellers:
Price reductions are rising, which is unusual for this time of year. To move your home, it’s crucial to price it right.
For Investors:
According to J.P. Morgan’s Alternative Investment report, investing in single-family homes can yield 8-12%. This presents a great opportunity for diversification. (Link to JP Mortgage Report)
| Financial Market Update |
Bond Trading Fireworks in Store for the Week Last week brought good news on inflation as Personal Consumption Expenditures came in lower than expected. Unfortunately, end-of-month/quarter bond trading pushed rates up slightly on Friday. This week, we expect fireworks. The jobs report comes out on Friday, and labor has become the most important gauge for rates. Jerome Powell is giving a speech on Tuesday, and we have manufacturing data coming out on Monday. As a reminder, the market is closed on Thursday for Independence Day, but the bond market will be very lively. We hope to see some positive data and rates dip a bit to bring demand back to the market. |
