Anticipation
As it relates to current-day economics, this week’s “Rock” pick is Carly Simons’s 1971 hit “Anticipation.” After last week’s article about “Riding The Storm Out,” it appears that buyers may be re-entering the market as they have been anticipating rates to move notably below the 7% mark, and they may actually get their wish come true based on this Friday’s inflation numbers followed by next Friday’s unemployment data.
Continued “curbing” of inflation numbers and continued weakness on the job front may be the recipe for rates to move lower. While many predictions at the beginning of the year were for rates to be close to 6% by July, the Federal Reserve has held to its guns and has been consistent, up until their last meeting, that they were not going to ease rates until inflation was at the 2% mark.
While I have shown in the past that this number is simply not achievable in the next 12 months, we are now hearing several Fed members that they are now looking at other sectors of the economy (a more Macro approach) and that easing may come sooner than expected. The two releases over the next two weeks may get the ball rolling for a possible cut prior to September.
We have already seen a pickup in the FHA/VA market, where fixed-rate mortgages have been below 7% now for several weeks on average. A move to a mid-6% handle on conventional 30-year fixed rates should give home purchases a boost to finish out the summer months. Buyers have been “anticipating” rates to move lower before they move forward with a home purchase. The time for that may be soon.
Remember… the BEST RATE… IS A LOCKED RATE… with a float down… ask me about our program that allows you to lock your rate and then float down if rates move lower.
Make sure you (or your buyer) get pre-approved before looking at homes so we can determine if you are looking in the correct price range and have you armed to submit an offer with a pre-approval letter!
Thank you for reading this blog. I hope that the facts and insights I share provide value to you.
If you’d like to allow me to invade your inbox and receive a weekend update from me each week, please provide your name and email address, and I’ll start sending over more facts and insights like you just read, as well as current market rates and news. If you have a topic you would like me to consider covering, please feel free to send it over. Who knows… I may write about it!
Blog post date: Wednesday, June 26, 2024
