An ad from the newspaper selling homes in Parkway Estates in 1980.  Parkway Estates is in South Sacramento, 95823 zip code.  It was covered in olive orchards with views all the way to Elk Grove.  Homes came with a cool 11.5% mortgage rate!

Analysts across the financial markets are updating their year end price targets and forecasts.  You'll notice these forecasts are being adjusted up, however they are also below where rates currently sit now.  We talk a lot about rates in this newsletter because it's one of the main levers to help with home buyers affordability.  We want to continue to keep an eye on consumer demand, and the labor market.  If the last few months were just a minor bump in the inflation journey then these analysts and I could get our wish of 6.5% mortgage rates.  A move into the 6% range with some duration could make things real spicy over Summer into Fall for buyer demand and sales activity.