A very big day as we have the September FOMC meeting later this morning. It is widely expected for the Fed to cut their Fed funds rates by at least .25bps, and there is a more than 50% chance for a .50bps reduction. We have been tracking this since 2022 when the Fed funds rate went from near 0% to 5.50% at a record pace to quell inflation due to the COVID shutdown and supply chain disruptions. These hikes greatly affected mortgage rates hence our immense focus on tracking this data. Mortgage rates went from 2.5% to almost 8% at one point. We are now hovering around 6%. 6% mortgage rates historically are right around the median looking back over a 40 year period. As we look at our month to month market update below, we see active listings rose from July to August. However, we are now in the seasonal listing decline period of September. It will be interesting to see if we see an Uno reverse card played this month. If that plays out, we should expect to see actively listed homes down next month, and closed sales up with some renewed appetite form the drop in mortgage rates. Purchase application prints on a week to week basis have not seen big jumps, yet, but there has been more positive than negative, so we'll continue to digest the data as it comes in. Remember, well priced homes sell. Price is the key. When buying, your financial situation is the key. Home prices go up, down and sideways, but the mortgage mostly stays the same for 15 - 30yrs. See you next week! PS. My kids school will have their biggest fundraiser of the year next Friday, the Fun Run. If you feel like supporting Violet and Peter and St. Charles Borromeo school, I know all would be greatly appreciative. Violet's unique linkPete's unique link |
