Big week for rates: Fed announcement on Wednesday and employment data on Friday. We’re helping buyers understand the cost of waiting by using our calculator and the recent FNMA forecast. Now may be a great time to buy. Check out our calculator: Cost of Waiting Calculator
| What You Need to Know |
Data Check: Applications: Down 2.2% this week and the MBA Purchase Index dropped as well. (MBA) Inventory: 677K homes on the market. Largest one week gain of the year. 39% more than last year. (Altos) Price reductions: Up to 39% of active inventory. Up again last week. (Altos) Rates: Rates held steady at 6.9%. (Mortgage News Daily) We continue to see local markets diverge in terms of supply and demand. For Buyers: Be cautious about waiting. It may feel like a buyer’s market, but FNMA’s forecast projects only a 0.2% drop in rates and a 6.6% appreciation in home values for 2024. For Sellers: Now is the time to be an active seller. Home prices have peaked for the year, and price decreases are on the rise. Use financing incentives and seller credits to attract buyers. For Investors: John Burns Research reports a new Housing-Cost-to-Income Ratio of 32.9%, while we’re currently over 43%. Housing affordability is a key driver of long-term rental growth, presenting opportunities for investors. |
Buckle Up For a Wild Week Rates ended the week about where they started. Personal Consumption Expenditures, the Fed’s favorite measure of inflation, came in higher than expected, raising questions about whether the economy is really softening. Rates didn’t move much because everyone is waiting to see if this week will bring any fireworks. On Wednesday, we’ll have the Fed decision on rates. We don’t expect them to lower rates, but the markets are very interested in their perspective on September. Following the Fed meeting, we will see employment data. The market is expecting 4.1% unemployment, so keep an eye on that report. An interesting data point to share with your clients: FNMA released their July Housing Forecast, expecting rates to drop to 6.7% by the end of the year (currently around 6.9%). Make sure your buyers understand the cost of waiting. The Envoy Cost of Waiting Calculator can help. |
