It seems the interest rate market may have finally turned a corner. Rates experienced one of their best weeks in years, which is great news for buyers. We’re reaching out to every buyer we’ve spoken to in the last 90 days because their payments could drop by as much as 10%.
For Buyers: Inventory up and rates down is the story. This moment won’t last. 10% increased buying power, (or lower payments) for every buyer today versus the beginning of May.
For Sellers: Lower rates may bring more buyers to the market. But, economic uncertainty, increasing inventory remain serious headwinds. Serious sellers need to price right and offer the right incentives before winter seasonality kicks in.
For Investors: Interest rates dropped for investors as well. Every pro forma on a single-family rental improved by about 10% since early May. That is a reason to re-engage
| Financial Market Update |
Last Week Delivered The Fireworks The Fed The jobs report didn’t meet expectations and fell to 114k in July–well short of the 175k projection. The unemployment rate ticked up to 4.3% from 4.1%. Rates saw one of their largest one day drops in many years. What does this mean for the rest of 2024? There is a sentiment that we have waited for two years for the economy to show some weakness and it is finally happening. Inflation is trending down; unemployment is trending up. This is generally good news for rates. The market is now expecting the Fed to lower rates between 0.5 – 1% before the end of the year. The downside of economic weakness is always the lives impacted. However, for qualified buyers that have sat on the fence, now may be the time. This week we need to tell the rates story and keep our eyes out for volatility. No big market moving news is expected. |
