What a difference a week makes. As I mentioned last week, the CPI report could change things for better or worse. They didn't get better, but it remains to be seen how much buyer demand will change. We shall see. Mortgage rates are back close to 7% again. This is not ideal to maintain the momentum we were seeing in the market, but that doesn't mean it will change drastically. We will have to wait and see. There is more economic data coming out later this week that the Fed likes to use even more than CPI, the PCE (Personal Consumption Expenditures). Ultimately, if the data shows that more rate hikes may be necessary then we could see mortgage rates shoot higher as lenders and banks need to revise their estimates relative to the Fed Funds rate. I won't bore you too much longer, just know that I am consuming all the information so you and others don't have to. I hope this helps. Nevertheless, there was a lot of activity last week before these rates moved higher, which leaves even less supply than before. With that said, if you're an active buyer and the rates don't affect your affordability too much then it would be a great time to take advantage with potential competition heading back to the sidelines. Once again, I'll be doing my part by bringing a new listing to the market on March 2nd. Have an awesome week! What are you seeing or hearing? I'd love to know paul@guiderealestate.com |
