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Volatility is here and market update numbers to start 2025.
Job data numbers came out last week stronger than expected. This is good for workers, but bad for mortgage rates. The interesting thing, however, is watching the 10yr yield explode higher, but mortgage rates not really exploding higher with them. This tells me spreads are getting better, and we could be in for a rollover soon...ideally.
I'll be watching that closely. The 10yr yield at 4.80% is not great. We do have more major economic data points that could help bring us back down with PPI reporting yesterday, and CPI this morning. The PPI numbers yesterday came in softer than expected, which is good for what we want to see, but we'll want continue that soft trend with the CPI numbers tomorrow. Remember, PPI is the Producer Price Index (prices businesses paid to make their products) and CPI is the Consumer Price Index (prices consumers paid at point of sale). Softer is better, implying a reduction in inflation.
December held true to it's seasonality with many active listings shutting down and most likely looking forward to re-listing in the new year. We'll keep an eye on that change in February. Pending and Closed sales were down a bit, but once again savvy buyers are taking advantage despite rates hovering around 7%. Mr. Trump is adamant about wanting rates to come down, so we'll see how fast his administration addresses this issue after Jan. 20th.
Finally, my first event of the year is around the corner. I am grateful for every newsletter reader with every Pizza My Heart! If you can make it to my East Sac office on Feb. 13th, I would love to gift you a heart-shaped pizza and sweet treat in time for Valentine's Day. Also, if you have a referral for me, I'll throw in a bottle of wine!
If you can make it, click the image below for the RSVP form. Thanks!
This newsletter is currently at 495 subscribers. I'd really love to hit 500 by Valentine's Day.
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