Economic Update for Homebuyers & Sellers – November 9, 2024
Tina Lucarelli
Entrepreneur, Leader for Arego Life Intl. Looking for like-minded individuals to launch in your country.
Dear Friends & Colleagues,
As you consider your real estate plans, here’s a quick economic update to inform you of the latest developments and how they might impact the housing market, mortgage rates, and your decision-making.
Election Impact on Markets: This week’s election results saw President Trump winning over Vice President Harris, which drove significant market movement. With expectations of reduced regulation and potential corporate tax cuts, the Dow surged over 1,200 points on Wednesday alone. While optimism boosted stock prices, bond yields spiked amid concerns over potential tariffs and increased labor costs, which could trigger inflation. However, Fed Chairman Powell’s announcement on Thursday of a ?% rate cut, with more cuts anticipated into 2025, helped ease concerns. By Friday, bond yields had stabilized, leaving the 10-year Treasury yield at 4.30%—slightly higher than Election Day but a positive sign for mortgage stability.
Stock Market Gains and Year-to-Date Performance: The stock market posted record highs this week, driven by investor expectations of economic growth. Here’s a quick look at how the major indexes closed:
Mortgage Rates and What to Expect Next Week: The 30-year fixed mortgage rate increased slightly to 6.79%, and the 15-year fixed rate held steady at 6.00%. With the Federal Reserve’s recent rate cut and the potential for further decreases, we could see mortgage rates stabilize or even improve in the coming months, which would benefit buyers and sellers. We’ll be closely watching next week’s inflation reports, as positive news could further support lower bond yields and potentially reduce mortgage rates.
Why This Matters for You: This market update suggests potential stability or a slight decline in mortgage rates for homebuyers, which may increase your purchasing power as we move toward 2025. For sellers, these conditions could mean continued interest from buyers ready to act before any future rate changes.
Stay tuned for more updates, and don’t hesitate to reach out if you have questions about how these economic trends might affect your home buying or selling strategy. I’m here to help you make informed decisions in today’s dynamic market.
Have a wonderful weekend, and let’s stay connected!
Warm regards,
Tina Lucarelli - Global Real Estate Advisor
ENGEL & V?LKERS Westlake Village
DRE 02102354